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Thursday, August 28, 2014

It's Official: Hello Kitty is a Girl and the Market Again Drops on Russia

     This is now a fact as it's been confirmed by the 'experts'-yes, she is a girl-not a cat. Joe Kiernan of CNBC seemed quite shaken by the news this morning and it seems that many reacted the same way but I've always thought she was a girl. I think the point is not that she's a cat herself but that she's a 'young, smart girl'-as we have now been informed-who really likes cats.

     In the past I've had people come up with all kinds of weird theories as to what Hello Kitty is-that she was a cat was a lot more plausible than someone who thought she was a he!! This person I have in mind was actually a female which made it even harder for me to figure out.

      http://www.washingtonpost.com/blogs/compost/wp/2014/08/27/hello-kitty-is-not-a-cat-everything-is-a-lie/

       So I have some happy closure there even as others are in angst. While this makes sense to me, here's what doesn't: the market sold off today with stories that Putin has opened up a 'third front'-in the Ukraine.

        While this may be very bad geopolitical news, what exactly is the market thinking this means today? If  Putin succeeds in his offensive in the Ukraine this is very lamentable but I don't know if anyone really knows what it means for equities. Maybe that's the answer-'uncertainty'-though we saw the market sell off sharply in late July over this very same 'uncertainty.'  So even though we had some good numbers in today like unemployment filings down under 300,000 again-298,000, and a GDP number revised up for the second quarter to 4.2% all that matters its the Ukraine

       
         http://www.cnbc.com/id/101954403

          In part no doubt the market just needs a reason to sell off as we are again at all time highs and the market has been up basically every day for the last two weeks. Right now, I remain bullish. I saw this as an excuse to buy the dip-buying 20 more BAC $16 calls for Sept 26 bringing me to 80 of those. I need just a mild snap back in BAC and JNJ to make some decent cash. I was up 102% until today-since I had bottomed out before the rally at 70% down. However, today, I dropped off 7%. So am I up or down altogether math majors? LOL. I know Greg knows the answer to this one.

        http://diaryofarepublicanhater.blogspot.com/2014/08/bank-of-america-pays-doj-17-billion.html

        P.S. For the actual geopolitical analysis, it seems that Putin is acting not at all from strength but desperation. The sanctions may hurt the Europeans but surely will hurt Russia much more. The ban on many food imports is surely a classic case of biting off your nose to spite your face.


       

       

2 comments:

  1. Google ate my comment. I'll try it again. The situation in the Ukraine is a complicated, messy situation. I think it is doubtful that we will see any increase in meaningful sanctions by EU countries against Russia. (They'd of done it by now, and Putin could give a shit.) The Ukrainian government forces are being helped by Ukrainian Nationalists with a history of fascist and neo-Nazi machinations. That isn't just Putin making that claim. Russia needs to stay out of the country, but feels threatened by NATO expansion, and will do t(is doing) he same as it did with the Georgia situation. For more on this, if you're interested: http://www.foreignpolicy.com/articles/2014/08/30/preparing_for_war_with_ukraine_s_fascist_defenders_of_freedom

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  2. I believe that the Europeans have already gone further with sanctions than anyone ever thought they would. Putin will give a shit if it hurts the economy. Certainly his own ban on food imports from the West will hurt him if it goes on too long.

    He's only invulnerable to the extent that the Russian people believe he's delivering them bread and circuses. Thanks for the link. I'm going to take a look

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