Tasmanian Times

The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. No price is too high for the privilege of owning yourself. ~ Friedrich Nietzsche

The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. No price is too high for the privilege of owning yourself. ~ Friedrich Nietzsche

Economy

The Oracle’s Market Update (Evening): The MDMA-fuelled feline

It wasn’t so much a dead cat bounce as an MDMA-fuelled feline launched into orbit from a cannon.

The numbers first. Unsurprisingly, the US tanked overnight. S&P continued their path of destruction, cutting the credit ratings of Fannie, Freddie and a string of other financiers.

Then fat factory McDonalds reported earnings growth below analyst consensus. The new, low calorie family-friendly happy meals don’t seem to be popular with the barge-arsed mums of America. Still, McDonalds sales are growing in China, which makes one wonder what goes into a Beijing burger.

The local bourse fell of a cliff when the market opened, dropping to GFC levels within an hour. By morning tea time, the damage was more than 200 points, or around 5.5 per cent. Then something happened – I’m not sure what. Newsreaders will describe it as bargain hunting, but hidden in the intraday data must have been something to inspire a buying frenzy.

By close, we’d clawed back all the 200 points lost in the morning, and then some. Eventually, the All Ords finished 40 points up on the day, a market rebound without precedent as far as I’m aware.

US futures, looking scary just a few hours ago, now point to the possibly of a big jump tonight. That will not be consolation to the cowardly investors who bailed out of the market this morning.

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5 Comments

5 Comments

  1. Christopher Purcell

    August 9, 2011 at 2:23 pm

    Love it! Does this mean that The Oracle knows Ecstasy?

  2. The Oracle

    August 9, 2011 at 1:02 am

    Barnaby, stick to the topic at hand.

  3. Barnaby Drake

    August 9, 2011 at 12:25 am

    “And yes, no state would like to knock back $120 million but what we’re talking about here is a $1.4 billion annual income from the forestry industry.” ANC News

    This is how the ABC sees the problem. No hint of Gunns or their chicanery, just falt statements from Barry Chipman et al that Forestry is worth $1.4 billion a year without proof or references.

    How do they get away with these lies and misrepresentation? But this is what the general public are treated to and there is no mention of the other carbon credits market, tourism or any of the other positives, just lies about the value of Forestry. If it were true, we would not be in the dire financial position that we are now, with no money for any of the essential services and a Treasury blackhole.

  4. davies

    August 8, 2011 at 10:47 pm

    There was reasonable chinese news on inflation (within expectations) at 12 which started the turnaround but the real kicker was a whiff of qe3.

    Burnthebanke has two days max to deliver a qe3 or markets will probably resume their dive. Even a qe3 won’t keep the markets up for long as people work out the possibility and implications of much greater inflation.

  5. Barnaby Drake

    August 8, 2011 at 9:35 pm

    US futures, looking scary just a few hours ago, now point to the possibly of a big jump tonight.

    Maybe this will encourage the cowardly Gunns to leave the security of the closet?

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