2014-09-15minyanville.com

`` Last week I stated that"when currencies in a derivative-based financial system trade like Internet/social media names, it is a prescription for instability... "Volatility can only be suppressed so far; like holding a ball underwater, when it snaps and pops there will be hell to pay. Since the markets are so highly correlated due to the Central Banks' manipulation and suppression of risk, a jump in volatility in any of the markets will have carryover effects in all other markets. A little over a week ago, the currency markets started an explosion in volatility, this week the interest rate markets started to follow suit, with some bleed over into equities. Overall, manipulated markets can only last so long, since all derivative bets end up in one direction, at which point the markets reprice risk violently."



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