Price Discovery May Yield More Unpleasant Surprises for Market
*WELL, SO MUCH FOR THAT*.
Stocks turned tail Tuesday, turning a triple-digit morning gain in the Dow Industrials into another triple-digit loss as the deterioration in the credit markets resumed.
Monday's rebounds in the credit and equity markets appear to have been mere interludes in the ongoing drip, drip, drip of bad news resulting from the unwinding of risk and leverage.
The villain for Tuesday's piece was American Home Mortgage Investment <http://online.barrons.com/quotes/main.html?type=djn&symbol=ahm>, whose shares lost nearly 90% of its market value after the mortgage real-estate investment trust said it might have to liquidate after *****************************************
Sort of like one of those South Polar ice shelves falling into the ocean due to global warming, the collapse of fictitious capital:
http://www.econlib.org/Library/YPDBooks/Marx/mrxCpC25.html#Part
Mike B)
********************************************************************* "The peculiar character of the Social Democracy is epitomized in the fact that democratic-republican institutions are demanded as a means, not of doing away with two extremes, capital and wage labour, but of weakening their antagonism and transforming it into a harmony."
Karl Marx, Eighteenth Brumaire of Louis Bonaparte http://www.gutenberg.org/etext/1346
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