ajtj99's Market Pulse

[jdaasoc]

Biggest problem is that more money is coming out of mutual funds then is going in due to owners of mutual fund ned to protect their retirement nesteggs.

Brokerage firm program trading worked well all day today but EOD redemptions by mutual funds sunk us in last 5 minutes of trading.

Tresuary is going to invest in bank stocks IMO to offset mutual fund redeptions.

Also, I think that they want to dry up any float of marginable shares.



If government prints money to offset mutual fund redeption, inflation will pick up and meager markets get offset by this inflation.

http://finance.yahoo.com/q/ta?s=%5ETNX&t=3m&l=on&z=m&q=l&p=&a=&c=%5EGSPC


IMO We are already at valuations for deep recession. More people realize that their funds are in peril and will walk away from market contining slow slide if new governemnt PPT program works.

Only solution is exiting from recession and pickup in hours per week worked and hourly wages increases to provide capital for new mutual fund inflows.

That is tuffest part of any gorvenrment intervention.