Oct

10

CramerMany signals abound that selling may soon be exhausted. Add to the growing list the TV channel selection list in my local gym. I'm told that two years ago many patrons complained about the lack of CNBC or Bloomberg News on the large flatscreens at my Park Slope gym. Now, those channels and other business channels are being banned. It seems the aerobic hipsters prefer ESPN and Seinfeld reruns to the daily blight offered up Cramer and Co.

I, like everyone else, am dumbfounded by the violence of the selloff and the near universal Armageddon sentiment. Stocks are proving to be one of the few examples of positive price elasticity of demand. Prices fall and demand collapses whilst rising prices lead to higher demand. I'm sure it has to do with some sophisticated utility theory. I wonder if the universe's greatest certainities are calamities (war, poverty, famine etc…) or can we still hope to overcome the odds? I'm banking with the optimists but is really tough going.


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