Sunday, October 19, 2014

What happened last week?

Futures and overseas markets are looking up again as the deep abyss of the crisis from way, way, way back on Wednesday continues to dissipate.

I guess the fact that only one school was shelled over the weekend in Ukraine, one nuclear sub did or did not go missing, ISIS is only "training" pilots with the help of the Iraqis, Hong Kong chaos has stabilized and no new cases of Ebola popped up in the US, so that has given everyone the green light to buy every stock that isn't nailed down.

However, insiders are still having hushed conversations about last Wednesday's market freak out.  This is pretty wonky stuff so I'll boil it down to the basics - someone was sufficiently scared to buy every US treasury future they could get their hands on.  This panicked buying pushed yields in the 10 year treasury below 2% and the volume of contracts was the stuff of legend.

As one Wall Street quote machine said last week "this is the stuff you'll be telling your grand kids about".

For a little perspective the volume of contracts traded was roughly 5 times (!) the number of contracts traded during the previous peak of panic - when Lehman Brothers collapsed.

So, here's what we know - either someone is really, really in the know about something or some computer program ran wild and moved the biggest market in the world like it was the market for beanie babies.

I'm leaning toward this was a computer model run amok but hey, what do I know.

From the "America's Ebola panic files" - via the dailymail

A Maine elementary school teacher has been barred from school after visiting Dallas, Texas, where Ebola patients have been treated - despite having no contact with any suspected sufferers.

* It comes after hundreds of parents removed their children from a middle school in Mississippi because the principal visited Zambia - 3,000 miles from any countries struck by the deadly disease.

#SMH at you 'murica :(


1 comment:

The Panda said...

Regarding your tweet about videos on websites: while I share your sentiment wholeheartedly, numerous contacts in media have been telling me for about two years that video advertising is the only growth area for "content" websites, and the only profitable business line for many of them. Apparently this is only partly a function of the additional price charges to display a video as. In many cases, I'm told, the company behind the website is also retained to make the video itself, on the theory that no-one knows how to communicate with their audience better than they do.