GREY:SXRZF - Post by User
Post by
PUNJABIon May 23, 2012 9:36am
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Post# 19936628
Black Swan event
Black Swan event Have been waiting for a black swan event since 2008. Has been prevented because of massive liquidity in the markets. The money was abundant, free or at a very low cost. For any rate of return money was forced to move into stocks. So much free money was dumped into the market the largest bank like JP Morgan did not know what to do with hundred of billions of dollars. In order to get some return on massive idle funds they were forced to take unnecessary risk.
In the last four years the underlying problems such as jobs, real estate & economic growth has not improved. Europe is in serious trouble which might start a cotangent affect & trigger a black swan event.
Can Ben continue to prevent it by dumping more liquidity ? It has worked so far & may buy some more time. Can has been kicked down the role for a while. Eventually a price has to be paid for all the abuses.
I am noticing that the liquidity is being slowly removed from the markets & there is a tendency towards risk off trade these days resulting into consecutive declining day & correction in the markets. All Dead cat bounces are being sold so far.