Saturday, December 31, 2011


"There is no doubt that de-risking/de-leveraging is taking its toll. It is an inhospitable environment for leverage. The MF Global fiasco proves that too little has changed here at home. And I take the drubbing unleashed upon the major U.S. financial stocks as confirmation of festering problems throughout U.S. and global finance. While the market ended little changed for the year, the extraordinary volatility connotes inherent instability. Yet even on this the final trading day of the year, much is left unclear, uncertain, unresolved and open to interpretation. Has impressive U.S. market and economic resiliency been signaling inherent strength and a stage set for a banner 2012? Or have complacency and the market’s inability to discount troubled waters ahead once again set the marketplace up for disappointment? Next week: “Issues 2012”

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