A Theory of Fixation

作者:Victor Niederhoffer
日期:2011/07/15

Of course there is a theory of fixation with the market getting fixated on vivid events, even when they are, as almost all the time, meaningless. So when Germany fixed its Greece problem the market went up 10%. Before that the market went down 10% on problems in Greece as if, as was said here by Rollert, the Greeks are such charlatans that it was foregone that they would accept bribes.

Thus the market is fixated on such things in the us that affected things in Greece and other countries so whenever the Greek type scenario comes up the market drops a quick 1%. That is indisputable. Those of us who follow it minute by minute have seen these 1% moves in a second about twice a week for the past month including the immediate impact of the Moodies announcement and the S&P announcement. Of course, these are wrongful ephemeral moves, due to the little man, with a short term horizon and they are quietly reversed by those with access to unlimited capital who already knew about the news as lackey points out et al.

Not to be one upped, the other rating service weighs in. They know much more apparently than the 10 year bonds market at 2.7% yields, a 9 month low about the risk of default and the likelihood of debt causing insurmountable problems and inflation. Let's all join hands and make sure that the service rates are increased so that the small man can satisfy his feeling of envy and vote accordingly for the party that made those that have more than they do suffer assuming they were not able to shift the burden and that the more they suffer the worse it is for jobs and growth.