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Massive dump,SPX rejected hard at the 200 day


  

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China is moving up the value chain with their knock-off products:

 

"China Counterfeit Parts in U.S. Military Aircraft "

 

"Dozens of suspected counterfeit parts have been installed on U.S. defense equipment from Raytheon Co., L-3 Communications Holdings Inc. and Boeing Co., including aircraft deployed to Afghanistan. "

 

http://www.bloomberg.com/video/79705752/

 

Maybe that was the ultimate cause of Skynet's failure...

:lol:

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Let me know how you like the new before and post market quickies, and how to improve them...

 

without doing more work dammit! :lol:

squeeze me for sayin

 

but that's sum awe sum shit!

 

anybody with a brain is gonna love it

 

oops don't look for a lotto amerikans to understand it

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in financial markets positive feedback loops are typically a very negative thing. Self-reinforcing spirals in tightly coupled systems like the financial markets are usually downward spirals.

 

Procyclicality of margin can work at the level of the market too. We are seeing the first signs of that with respect to Italy today. LCH.Clearnet SA (the French arm, and not RepoClear) raised margins on Italian government debt today. This will tend to induce some sales of leveraged Italian bond positions, which will reduce prices further. Similarly, increasing haircuts will tend to reduce liquidity, which will also tend to put downward pressure on prices. Lower prices and lower liquidity put further pressure to raise haircuts.

 

There will be tremendous pressure on CCPs to accept riskier collateral in the clearing mandate world. Sovereign debt has been a primary asset for margining purposes, and the assumption has been that this collateral is low risk. But we now know that is a fiction.

 

So–lookout below! The spiral has begun. Keep eyes on RepoClear. I imagine it will be under tremendous pressure to avoid jacking up repo margins.

 

more good stuff here

 

http://streetwiseprofessor.com/

 

ummmm haircuts

 

Thanks for that.

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