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The Seaweed Bubble Bursts, Seriously? at Trader’s Narrative

The Seaweed Bubble Bursts, Seriously?

Talk about deleveraging. Markets all around the world are getting spanked. Brazil hit the circuit breakers after a 10% drop. Argentina’s MERVAL dropped 18%. Iceland is basically a very large crater by now.

But the real contagion that no one is talking about is the busting of the seaweed bubble:

No one has any idea what happened, eh?

Hmm… didn’t Alan Greenspan take a vacation in Indonesia recently? ;-)

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4 Responses to “The Seaweed Bubble Bursts, Seriously?”  

  1. 1 Bill K

    I saw the seaweed bubble coming a mile away and started shorting SEAW When it topped out at $107!

  2. 2 Babak

    The scariest thing about all this is I had no idea I was consuming so much seaweed in my diet. Why isn’t it listed as an ingredient? Mind you, a bowl of miso now and then is tasty.

  3. 3 worldtrader

    This sell-off, around the world today, may finally set the stage for an intermediate bottom.

    Unless, shall we say, lots of people still calling the bottom. Look at all the CNBC “pros” still calling bottoms even as of yesterday.

    I don’t know what is better. Selling off to 650 in one quick swoop in the S&P, or just chopping around 20% at a clip over the next 3 months as government after government intervenes to no end. And yes, some sizeable bear market rallies always come. But sometimes wouldn’t it be better to flush everyone out all at once and build from scratch without months or years of pain?

    Hedge fund deleveraging is the game right now, and we can forget about watching the equity indexes for the clues. They are secondary now. The real tells are the carry trade currencies and how they are unwinding. Hell, if I can get 100:1 leverage in my currency account, God knows how much some hedge funds levered. They fool themselves by saying, “we’re conservative and would never use 100:1. We barely are above 10:1 in our leverage.” They got a little carried away. Cough… cough.

  4. 4 worldtrader

    “Brazil hit the circuit breakers after a 10% drop. Argentina’s MERVAL dropped 18%.”

    People don’t really care. I have many a friend reply to me, “why do you get so worked up?” That was months ago, and now their mantra is “it’s only money.” Wow. They can’t be serious. That is just denial. They got more worked up over the 2000-2002 bear market than this one. All I hear from regular Joes now are comments similar to Monty Python’s black knight, “tis’ just a flesh wound.”

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