- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
- The Gold Rush Is On
TRADER TALK RSS FEED
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Wave of Debt Payments Facing US Government
- HP Comes in As Expected; Is It Time to Buy?
- Prepare For Large Decline In Stocks, Next Year?
- Hewlett-Packard Profit Rises, Matches Guidance
- Paul: Audit the Fed
- The Social Media Gaming Threat
- Nov. 23: Unusual Volume Leaders
- Holiday Travel Outlook
- Cramer: Buy These Banks, If...
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
- More Consumers Giving 'Black Friday' the Cold Shoulder
- Prepare For Large Decline In Stocks, Next Year?
- Tuesday's Heavy Dose of Data to Dictate 'Risk' Behavior
- Hewlett-Packard Earnings Rise, Match Guidance
- HP Comes in As Expected; Is It Time to Buy?
- Cramer: What Monday’s Housing Number Really Means
- Why the Dollar Will Likely Stay Weak for Some Time
- Bear, Lehman Execs Weren't Wiped Out by Crisis: Study
- How Real Estate Investors Skew Housing's Reality
More Videos
Trader Talk
Text Size 
Monday redux: we are seeing today what we saw on Monday: fund redemptions and margin calls.
On Monday, for example, mutual fund investors panicked and pulled $10.9 billion out of the market (TrimTabs), with particularly large outflows ($4 b) from global funds.
So far, there's $13 billion in outflows in the first ten trading days of September. If we stay at this level, it will be shy of the $35.8 b outflow we saw in January and well short of the record $49 b outflow in July 2002, but it will still be a big month for outflows.
 |
July 2002? Remember the stock market bottomed in October 2002! That's the rule: retail investors tend to panic near market bottoms. So the big outflows this year were in January, July…and September.
Morgan Stanley
I have read 6 analyst reports on Morgan Stanley[MS
Loading...
()
] today, all of them have that Dear-In-The-Headlight look, as analysts are clearly more comfortable talking about earnings than the selloff in the stock.
 |
UBS's Glenn Schorr is the first one I have seen to directly address the cause of the selloff, the increasing cost of credit default swaps to guarantee the company's debt: "we find it disconcerting that the illiquid CDS market (or the rating agencies) can have so much influence on the fate of these companies and alter the landscape of the brokerage industry."
Hear, hear. He notes both Morgan and Goldman[GS
Loading...
()
] have strong capital and liquidity positions, have reduced bad asset exposures, and have prefunded their issuing needs for the next 6 months, but does not say the obvious: the company itself has done all it can to address the fundamental issues in its earnings report.
_____________________________
New from CNBC.com:
_____________________________
_______________________________________
CNBC's Names in the News:
Lehman [LEH
Loading...
()
]
_______________________________________
Questions? Comments?
POPULAR TRADER TALK POSTS
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
- The Gold Rush Is On
Data is a real-time snapshot *Data is delayed at least 15 minutes