Liquidity
The market is a song, and it keeps on singing. Today’s vibrato was no exception. Markets date back to the ancient Chinese rice markets. Civilizations and empires come and go but the market goes on. It’s the last thing to close when over-run by war, floods or pestelence and the first to open when crisis ends.
US equities markets are no exception, except the US cherishes a rather more robust equities market, driving capital into the hands of our small innovative technologically oriented companies. American ingenuity comes to fruition largely due to the ready availability of that capital. One cannot rely on banks in most of the world, -- or here either -- and most of the world lacks our kind of stock market. Millions of investors, like democracy, vote with their savings on good ideas.
The market liked Black Berry’s release of free enterprise server software and RIMM – that’s Black Berry’s code name -- came roaring back. The market tanked this morning with naysayers wringing their hands, but this afternoon smart money and instructions went on bargain basement buying spree.
I looked again at the Daily Treasury Statement for signs of liquidity, the L2 if you will. The year over daily collection into the US Treasury, reflecting immediate and future availability of investment money, showed 3.4 B over last year (106%). The month to date showed a growth of 10%. The year still trails by 43.7B, but that is only 5%.
Even though the loose cash is still mostly in the hands of over bonused and under handicapped golfers of the banking and other monopoly industries, this year over tax collection growth suggests the lines are crossing between last year’s fall off in money flow and this year’s catch-up. Let’s see if the year to date figures will also cross over in March as a confirmation.You can keep your gold, your oil and your hedge fund paper. I like stuff that works, that produces. Hardly anyone can argue against peak oil and if I were a speculator, I would bet against the come on gold too. Give me technologies that I know something about and it’s like a crap game when you get to bet with the house. The market goes up and the market goes down, but it keeps on going. Play long enough with the odds and it’s the best hedge against anything – but you gotta work at it.
US equities markets are no exception, except the US cherishes a rather more robust equities market, driving capital into the hands of our small innovative technologically oriented companies. American ingenuity comes to fruition largely due to the ready availability of that capital. One cannot rely on banks in most of the world, -- or here either -- and most of the world lacks our kind of stock market. Millions of investors, like democracy, vote with their savings on good ideas.
The market liked Black Berry’s release of free enterprise server software and RIMM – that’s Black Berry’s code name -- came roaring back. The market tanked this morning with naysayers wringing their hands, but this afternoon smart money and instructions went on bargain basement buying spree.
I looked again at the Daily Treasury Statement for signs of liquidity, the L2 if you will. The year over daily collection into the US Treasury, reflecting immediate and future availability of investment money, showed 3.4 B over last year (106%). The month to date showed a growth of 10%. The year still trails by 43.7B, but that is only 5%.
Even though the loose cash is still mostly in the hands of over bonused and under handicapped golfers of the banking and other monopoly industries, this year over tax collection growth suggests the lines are crossing between last year’s fall off in money flow and this year’s catch-up. Let’s see if the year to date figures will also cross over in March as a confirmation.You can keep your gold, your oil and your hedge fund paper. I like stuff that works, that produces. Hardly anyone can argue against peak oil and if I were a speculator, I would bet against the come on gold too. Give me technologies that I know something about and it’s like a crap game when you get to bet with the house. The market goes up and the market goes down, but it keeps on going. Play long enough with the odds and it’s the best hedge against anything – but you gotta work at it.
Labels: Economy
posted by Clancy Hughes | 2/25/2010 03:43:00 PM
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