A lot of people don't like Cramer and they say some rough stuff about him but I look @ what he's done. He's ran big money, he's with made people, who you with? He's ringing an alarm, will anyone answer before A massive drop in the market? Or will it take a painful drop in risk assets? Does it have to look like deflation more than it already does?
These are the questions that plague the world markets. We all know the back drop and if you don't, get your head out of the sand and look @ chart bro.
It 's serious out here.
You can't play around in this market. Position size means a lot here. A macro outlook means just as much, and eyes on the charts constantly. The charts will answer these questions. The dollar pop is strong. Risk needs to see that get weaker. A decisive break under 81 on the $dx_f would be nice.
What's not nice is Jim Cramer has a network that's "A" list. If he's predicting bank runs on national T.V. he's heard something that makes him believe it... We saw huge amounts of money coming out the Euro on the $6e_f chart so it's not just a scare tactic.
They say U.S. money market funds have roughly 35% exposure to European banks. That's the main tie that I can see but who the hell am I? People like Jim Cramer whether there's an agenda or not give us on the outside a glimpse of what's going on. Take heed.
The markets are pricing in a drastic fall in aggregate demand. The $cl_f broke down. Oil almost went in the 80's. Lower energy prices are good until they drop so much that they're bad. Seems like we're seeing the latter but that's from the outside looking in.
Right now (Sunday night 5-20-12 8:25 pm Eastern standard time) risk looks to be getting a bid. It's the "Maybe they'll do something" bid. Or it could be a "I know they'll do something" bid. Either way, in order for it to pick up steam they'll actually have to do something.
By they I mean the monetary authorities of the world of course. Some need to print, some need to absorb the effects of the printing. For the Euro to go down as it needs to for the EU countries to get some debt relief, other currencies have to except a stronger currency and that's not really in vogue right now. How they do it is print Euro's to recapitalize Spanish and Italian banks. That simple to write but typing is infinitely more easier than politically pulling it off. That's when people like Jim Cramer come in. On a Sunday morning while ma & pop eat their Sunday brunch in front of the tube and politicians hanging on every word, Jim is on to ring the alarm. We'll see if they hear and respond. If you haven't seen it here's a link to the vid of Jim on Meet The Press here:
JIM CRAMER: I'm Predicting Bank Runs In Spain And Italy In The Next Few Weeks