WALL STREET LATELY IS STARTING TO LOOK LIKE SOME KIND OF GAME THAT IS TOTALLY DETACHED FROM THE REAL ECONOMY...AND OFTEN FROM REALITY ITSELF...
THERE IS SIMPLY NO RATIONAL EXPLANATION FOR WHAT GOES ON...OTHER THAN THAT SOME HEDGIES ARE EXECUTING THEIR PROGRAM TRADES...AND RUNNING WITH THE HERD...
ECONOMIC REALITY ONLY "KICKS IN" AT THE EXTREMES... I HAVE OFTEN THOUGHT THAT THE ONLY TIME THE MARKETS ARE TRULY RATIONAL IS AT THE MARKET TOPS AND MARKET BOTTOMS...IN BETWEEN IT'S ESSENTIALLY IRRATIONAL TRADING...BASED ON SHORT TERM RUMORS...AND DAILY DATA POINTS THAT MAY OR MAY NOT HAVE ANY USEFULNESS IN DESCRIBING THE REAL ECONOMY.
