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Freaky Friday Potpourri


Be careful of what you wish, if for no other reason than for why it might arrive.


There's been alotta chatter out there regarding this Blackstone IPO. In fact, Mr. Practical weighed in with his take. I posed a question this morning, asking if the IPO's of hedge funds (Fortis) and private equity (Blackstone) would inject a massive, final bubble of liquidity into the market.

Remember FIG Newton? The thrust of that column is pertinent for this discussion. The markets, when you assimilate our four primary metrics, come down to one basic, simple, constant premise: supply and demand. IF (this is a big if) more funds tap the public appetite, it could conceivably give the debt dependent drunk another drink.

The hangover will be cumulative and painful, but anyone who's ever had too much to sip will tell you that they're not thinking about the next day when they're tossing 'em back. The same can be said for our financial standing in general, I suppose, as central bank policy shifts the burden to our kids and their kids. THEY will pay the price for our immediate gratification, A.D.D. society, not us; but alas I digress.

As traders, we're more interested in the journey rather than the destination. And as someone who has concerns regarding the structural imbalances embedded in our globalized, finance-based, derivative-laden financial fabric, I'm always trying to identify the other side of the trade. This could be a goose that we'll gander upon, in time, so I'm simply trying to see all sides and manage my risk.

Random Thoughts…

  • See LEND bend (-4.5%). It's been a pretty good proxy for sub-prime concerns and, ergo, the financials, which, ergo, shape the tape.

  • What the heck is ergo anyway? I use it all the time but I couldn't tell you what it means.

  • It's Freaky, it's Friday and there's only four hours left. Nice.

  • Me and Lorenzo rollin' in the Benzo? The unexpected pop in new homie sales gave a bid to the tape as folks extrapolated the potential for an easier ease (Easy-E?). We can debate the merits of that train of thought but we should respect the train. And the thought.

  • Indeed, the light at the end of the tunnel (rate cuts) may be a steam locomotive, rollin' down the track. Be careful of what you wish, if for no other reason than for why it might arrive.

  • Tickle me tea leaves? We've got marginally positive breadth on the big board (flat Nazz), mixed financials (watch this group--it's that important) and a flat dollar. That sounds like a recipe for an extended weekend to me.

  • For what it's worth, and don't quote me, I've seen much better sellers into this lift. That's subject to change, natch, but I wanted to pass it along. O-Dog would have it no other way.

  • Yeah, yeah, I know we've been talking about this for a while but I guarantee you that we've got a monster in the hopper that is gonna blow the doors off MVTV. Wait'll Otis sees this-he'll LOVE this!

  • "Todd, ergo is Latin for "therefore." There. I finally put my two years of high-school Latin to use!" Minyan Bill from Maine .

  • Enjoy the weekend, Minyans, and be good to others and better to yourselves. You've surely earned it.


Position in financials

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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