| S&P 500 vs TED Spread Posted: 17 Oct 2011 11:16 PM PDT From Bloomberg tonight, the S&P 500 vs the TED spread over the last few years. When the two diverge it isn’t usually for long, and they recently diverged. If the past holds, the path forward is lower in the S&P. Or lower in the TED Spread. Either one, really. 
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| Joel Greenblatt on Michael Lewis Posted: 17 Oct 2011 10:19 PM PDT Joel Greenblatt on Michael Lewis: Question about Michael Burry. (Background: In "The Big Short", writer Michael Lewis made Greenblatt out for a villain for taking money from Burry even as Burry was right.) Greenblatt was a little annoyed by the question: "Michael Lewis has never let the facts get in a way of a good story. What they got wrong in the book is Burry wanted to side pocket both mortgage and corporate CDS… we did not want him to side pocket the liquid corporate CDSs … only reason we took money from him was we were getting redemptions."
via Joel Greenblatt: The Big Secret For Value Investors (Presentation From Value Investing Congress) ~ market folly. 
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| Traders Warn of Market Cracks Posted: 17 Oct 2011 09:51 PM PDT The WSJ is finally noticing that markets have become, you know, weird: Amid the wild swings of the past few weeks, cracks are appearing deep in the workings of the stock market that some professional investors say are making the market treacherous to trade. Hedge-fund traders and mutual-fund managers say it has become increasingly tough to trade an individual stock without causing a big swing in its price. Thats led many large investors to step back from the market instead of risking being stung by the trading difficulties. The big moves in stock indexes have caught attention. Just on Monday, the Dow Jones Industrial Average dropped 247.49 points, or 2.13%, to 11397.00. But market participants say trading conditions are much worse when they drill down to individual stocks, highlighting skittishness of investors of all stripes. Even among some of Wall Streets most actively traded stocks, such as Apple Inc. or Netflix Inc., traders say it has been more challenging than usual to buy or sell. The problem is a lack of liquidity—a term that refers to the ease of getting a trade done at an acceptable price.
via Traders Warn of Stock-Market Cracks – WSJ.com. 
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| Tracking the Great Canadian Real Estate Bubble Posted: 17 Oct 2011 05:54 PM PDT Apparently Vancouver has now tagged Toronto “it” in the Great Canadian Real Estate Bubble. While the former is decelerating from absurd to only insane price gains year-over-year, the latter is hanging in at absurd, thus threatening Vancouver’s bubble price-gain lead. 
Look at how nice a job those Canadians are doing at leaving the U.S. behind in the bubble game. Okay, the following chart, while provocative, is bizarre. I can accept converting to a common currency, and alibi the distorting effects of Vancouver, but it should not compare average Canadian prices to median U.S. prices. That’s just wrong. I’ll leave the graph up, but this is a distorting view.
More here. 
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