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There Goes That Theory- Professional Edition

In a review of the commercial paper and money fund data we saw evidence of a stall in the explosive rate of transfer of assets into money market funds. They lost about $24 billion in the week ended 2/23, over a period where the S&P lost nearly 100 points. There goes the theory that all that cash on the sidelines will boost the market. I’ve had another theory which I have been posting here for the past month or so. The cash is needed to fund everyday expenses and current obligations, specifically BECAUSE THERE IS NO INTEREST INCOME as there normally would be to support these obligations. The zero interest rate policy causes self cannibalistic behavior. We are forced to eat our own wasting assets to survive. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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