Stocks | timiacono.com

One might get the feeling that investors are on to something with their reaction to the recent market slide, namely, that Wall Street has, in recent years, created new and different ways to crash that bypass any regulatory measures put in place since the 2008 crash.

From a Marketwatch story this morning comes the chart below showing equity fund withdrawals that, on Tuesday, reached Lehman levels.

Have a look at three other stories in the previous links post if you doubt the premise:

After the “Great Sedation”

Jim Grant talks about the possibility of sustainable, “free-range” interest rates in the wake of what, increasingly, looks like just a run-of-the-mill, albeit much needed correction for the stock market that, now, should be pretty interesting to watch in the weeks ahead.

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Cramer Says Sell! Sell! Sell! China Stocks

I don’t know if anyone still watches CNBC and, if so, whether Mad Money’s Jim Cramer still has people tuning in, but there’s a strange sense of deja-vu in this clip from yesterday in which he laments the recent market crash correction and provides some free advice.

Things become kind of surreal at about the 2:15 mark when he comments on (and successfully pronounces, apparently) Guangdong Meiyan Jixiang Hydropower Company and the now failed Chinese government’s support of its share price.

I had to stop the video there…

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The Emporer is Indeed Naked

From Alberto Gallo, head of credit research at RBS, via this item at the Fiscal Times comes this handy guide to post-Great Recession monetary policy and its various effects.

How long will it take for this to become the mainstream view?

After the events of the last few days or so, perhaps sooner rather than later.

China and the Fed

The Federal Reserve brain trust must be rolling their eyes at the latest market turmoil resulting from China’s currency devaluation – first Greece, now China.

Keen on notching that first rate increase in about a decade, lest they be accused of leaving rates “too low for too long” again amid more “Fed-bubble machine” accusations, they are now growing more fearful of repeating the European Central Bank’s 2011 error when they raised short-term rates on nascent signs of inflation, only to reverse course months later.

Here’s Art Cashin’s take on the situation:

There’s nothing worse than a central bank that makes a bad situation worse and the trade-off here is whether the Fed’s action or inaction results in a near-term market crash or bigger asset bubbles later. My guess is that it will be the former combination.

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