wednesday woes, page-33

OK - I've read a lot about "corrections" and what I do know is that the media doesn't know crap, and they just pick the first thing that they can find in the news that will be easy to explain.

I like the link that Voltaire posted by the Lehmann guys, who talked about the warning signs for the correction from the brokers stocks (ie ML, GS, BS etc). They were already breaking support days before the 27th of feb. The USD/Yen was in this stupid 3 lower peak pattern, and Japan were imminently about to rise rates. The subprime mess came about at that stage, but China had the first go at it. It wasn't really that China sold down 9%, but was that China was a marker to the woes in the US more than anything I'd say.

People think the investors in China are just a bunch of peanuts who don't know anything about the world - but really, a billion people with a dollar each aren't worth as much as a couple of big hedge funds in the US (on influence). But that's another story I'd say.

February was nothing, as the problems with the economy and credit and all that stuff weren't nearly perceived to be half as bad back then as it is now.

I'd say we're likely to see a similar event, although not as abrupt, but longer lasting.