Financial capital price determination

Are Traders Losing Their Risk Appetite?  January 30, 2013 – 08:30 am
You figure out where the money is going.

There are ways to determine how money is moving around between assets. One great resource comes from the Commodity Futures Trading Commission (CFTC), which produces a Commitment of Traders (COT) report each week.

While the data in this report is a week delayed, it offers insight into how retail and commercial traders and investors are positioning — long or short — in assets like commodities and currencies.

To that point, a look at inflows, outflows and redemptions in Exchange-Traded Funds can indicate investors’ appetite for certain industries, sectors and asset classes … and for risk-taking in general.

Now, these positioning flows rarely drive price action. But they can reveal investor sentiment and indicate extremes.

So, like technical and fundamental analysis, positioning can add credibility and precision to a forecast.

On a more-global front, while it can be tough to pinpoint smaller flows of investment capital (vs. fixed asset investment or foreign direct investment, for example), it is important to understand

Source: Uncommon Wisdom Daily

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Do you have money with a stockbroker?

March 28 (Bloomberg) -- Massachusetts Secretary of State William Galvin is investigating the sale of auction-rate securities by UBS AG, Merrill Lynch & Co. and Bank of America Corp. to individual investors in the state.
The regulator issued subpoenas for documents and testimony on practices the companies used to sell the securities, which are long-term bonds with interest rates that reset ...nine companies, among them Blackrock Financial Management and Nuveen Asset Management, that sold auction securities to raise capital for their closed-end mutual funds.
Simple explanation, they sold you a CD that was NOT secure, and now is worthless.

How many bubbles are there left to

Inflate? I cannot think of one. Some are ready to pop like mortgages or bonds or local govt budgets.
This is a great read.
Ron Paul: So my question is, are you familiar with the explanation of the Austrian economists, of the business cycle, how bubbles are formed and what we should do, and you shake your head yes, and if so, if you do understand that, which part of it don’t you like...his credit boom. You’re also right that moral hazard played a very important role, most dangerously in Fannie and Freddie and those institutions were allowed to grow to enormous size, take on enormous risk without capital to support those commitments because of the expectation the government would come in and protect them from the failures. I completely agree with you. Completely agree with you.

The "Financial Crisis" - use your BRAIN to

Simple explanation (understanding the terms):
1. financial engineering = new ways of gambling
2. Investors = gamblers
3. Stock & Futures Markets = casinos
4. Financial Analysts = casinos’ salesmen / women
5. Bonds = I.O.Us.
6. Banks = Dishonest Money-lenders (actual money-lenders licensed not as banks, but as money-lenders, cannot create “money out of thin air...ors’ money” to pay off an earlier set of “investors”).
Banks worldwide have collapsed!
Why?
Two reasons – (i) they gambled at the casino and lost trillions and (ii) almost all their borrowers that borrowed huge sums (leveraging 30 times or more i.e. if a borrower has $1 million capital, he can borrower $30 million) have defaulted.
Whatever happened to COMMON SENSE?

The bailout bait and switch

The explanation that has been given for the financial crisis does not match up with the solution that has been devised. Moreover, the windows into the crisis offered by the authorities are opaque rather than transparent.
The only clarity we have is that the crisis is resulting in financial concentration and that the bailout constitutes a massive raid by financial crooks on both taxpayer...ucing the income flows through to the holders of the mortgage backed securities, why isn’t the bailout money being used to refinance the defaulting mortgages and to pay off the foreclosed mortgages? That would restore the value of the mortgage backed securities, and it would not be necessary to pour huge amounts of taxpayers’ money into recapitalizing banks and purchasing their bad assets.

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Let's estimate this using the most inclusive definition of intellectual property: patents, copyrights, trademarks, trade secrets, customer lists, business know-how, and other secret sauce. Relationship to Market Capitalization. An oft-cited statistic …

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