From Ian Winer, director of equity trading at Wedbush Securities, referring to Monday’s financial turmoil:
People are getting nervous, as what seems like—all of a sudden, out of the blue—you have multiple hot spots. They’re just trying to protect their gains on the year and position themselves in the even that this becomes a more dramatic selloff.
The Wall Street Journal, “Turmoil in Europe Shakes Markets,” 6/30/15
Out of the blue? The world has been on a debt, debt monetization, central bank balance sheet expansion and interest rate suppression binge for six years, and the inevitable consequences are somehow out of the blue? Too much debt means eventually somebody has to cut back (China) or cannot pay (Greece and Puerto Rico). Once debt starts imploding, debt and fiat liquidity supported asset prices fall. It’s not like it hasn’t happened before. Remember 2007-2009? This one started in earnest at the end of last year, and if Mr. Winer is surprised then Wedbush Securities should look around for another director of equity trading. If he wants to hold on to his job, Mr. Winer might want to put down whatever mainstream media rags he reads and check out SLL and the sites on its blog roll.
