Arthur Cashin, legendary NYSE floor trader, is campaigning for the Super Bowl to be moved to a Saturday night. It is his contention that it would help improve the overall economy through increased productivity and increased spending. Research has shown that 6% of the United States workforce calls in sick on the Monday after the Super Bowl. Therefore, moving the Super Bowl to a Saturday night would increase productivity. It would also promote spending as more consumers would have parties and supermarkets and restaurants would generate more revenue on a Saturday night rather than a Sunday night. If you agree and wish to send a message to the NFL please post this blog as your Facebook status.
Getting back to business I hope that you have followed our call to hedge your positions and raise your cash levels. It could be another volatile day ahead. Resistance level is 10.300 on the DOW and support is 9,700. 10,000 is only psychological support.
I thought that it would be good to review Ben Bernanke’s Famous “Helicopter Speech” from 2002. It has been a roadmap for me throughout this crisis. He goes on to lay out his plans for this crisis although believing it could never happen here.
Deflation is in almost all cases a side effect of a collapse of aggregate demand–a drop in spending so severe that producers must cut prices on an ongoing basis in order to find buyers.
Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. – Ben Bernanke
The Federal Reserve has created an asset bubble to solve the problems of the last asset bubble that popped. They have become the buyers of last resort. One thing that I learned as a floor trader was this quote from John Maynard Keynes.
The market can stay irrational longer than you can stay solvent. – John Maynard Keynes
As a specialist it served no purpose to delay the inevitable. You would get the stock to the price it needed to go as fast as possible. This way you could create a bounce. I am afraid that by trying to engineer a soft landing the Fed has created an unsustainable bubble and the market will remain irrational longer than they can remain solvent. It is investing law.
Answer from yesterdays’ trivia: Gale Gilbert played on 5 straight Super Bowl losers. Gale Gilbert was on the Buffalo Bills teams that lost Super Bowls XXV through XXVIII, then went to the San Diego Chargers who lost Super Bowl XXIX. – Wikipedia
Question:What group has performed the most Super Bowl halftime shows?
Some interesting stats for the big game. Teams shut out in the first half are 0-11 and only one team has come back from a 10 point deficit. Traffic accidents in the 4 hours after the Super Bowl are 40% higher than average. So if someone gets up by 10 maybe you should head home early. Have a happy and safe Super Bowl Sunday!
Pete Townshend says the band will play a medley of their hits consisting of Pinball Wizard, Who Are You, Baba O’Riley, Won’t Get Fooled Again, and the finale of “Tommy”. The title of the song, Baba O’Riley, is derived from this combination of the song’s philosophical and musical influences: Meher Baba and Terry Riley.- Wikipedia
I couldn’t resist.
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