Paul Kedrosky's Infectious Greed

Death of Equities, II
Pettis: The Swiss in Focus
Hugh Hendry Drops By BBC
Monitoring the Fed Monitoring You

Posted: 25 Sep 2011 10:08 PM PDT

Bullish stuff from the WSJ tonight:

…across the financial markets, a sea change is taking place. Investors are abandoning the time-tested “stocks for the long run” optimism that dominated since the late 1980s. Instead, there is a widening belief that the mess left behind by the housing bubble and financial crisis will be a morass to contend with for years.

via Pivot Point: Investors Lose Faith In Stocks – WSJ.com.

Pettis: The Swiss in Focus

Posted: 25 Sep 2011 06:47 PM PDT

Among other things in Michael Pettis’s latest, this on the Swiss situation:

The Swiss have clearly made their decision. They do not want any more foreign capital inflow and are trying to eliminate or at least reduce it by capping the rise in the Swiss franc. It probably won't work. I guess now by having converted the currency into a one-way bet I assume that we are going to see massive speculative inflows into the Swiss franc on expectations that inflows will eventually force the SNB to revalue.

via China Financial Markets » The euro once again.

I agree entirely.

Hugh Hendry Drops By BBC

Posted: 25 Sep 2011 06:45 PM PDT

Noisy hedge fund manager Hugh Hendry ends his exile and drops by BBC. Note: It is a motley collection of guests, including Hugh a software exec and an interior decorator.