FIRE Economy | 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.

Panic on the Street

It looks like they’ll have plenty to talk about this week beyond the official topic of  Inflation Dynamics and Monetary Policy at the Federal Reserve’s annual gathering of the brain trust in Jackson Hole, WY, what with the sky being full of smoke from physical fires burning to the West and financial markets around the world figuratively going up in smoke.

What’s interesting about recent developments (if not surprising) is that China’s disappointing economy is being blamed for the market turmoil, prime evidence being the graphic below in this Wall Street Journal story today:

What gets short shrift from most media outlets (this Forbes piece by Steve Keen being the exception to the rule) is that we may be looking square in the face of yet another ugly unwind of yet another reckless expansion of credit and debt. Oh well…

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