Mercury Rising 鳯女

Politics, life, and other things that matter

Look out below

Posted by Charles II on April 9, 2012

Outsourced to Ritholtz.

Basic story: futures predict -1.5%. We are close to “Sell in May and go away.” seasonal selling (though April is usually a good month). The weak payroll data make people jittery. Mayan calendars says… well, you get the idea. No real reason to expect a market correction, so everyone is expecting one.

Me, I don’t see any news that would cause a correction. The market is overvalued, but it’s not like that’s anything new. The real news that makes me jittery is that JP Morgan has apparently found a new loophole by which to lever up, even as it develops that corporate debt actually is quite high. Yes, corporations have lots of cash. They also have lots of liabilities. Those are things to worry about: arsonists have just bought gasoline. There is plenty of tinder.

Lord, we live in stupid times.

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