Finally the mystery of the last two weeks is resolved. All the deterioration in the charts was happening because of the liquidation of the Carina CDO that was explained here and here. Then the chain reaction started and finally reached the stock market this week.
Today market action smelled a lot like a deleveraging of speculative positions. I’m saying that because when I see oil stocks dropping and real estate and yen rallying it can’t be explained otherwise without making it too complicated. There are just less money on the markets than before and this hissing sound of evaporating money will be louder. (You know that I’m a deflationist)
Do you know a song about Carina? I found only this one:
Carina diventi tutti i giorni piu’ carina ma in fondo resti sempre una bambina che non conosce il dolce gioco dell’amor graziosa nessuna donna al mondo e’ piu’ graziosa. Here we go
Update: there is a Corrina song here. I think close enough