Looks like the great leverage unwind begun in 2007 is not yet even close to becoming old news.The eye is not satisfied with seeing, Nor the ear filled with hearing.
—Ecclesiastes
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Nothing like institutional investors tipping their hand and revealing how capital starved they remain as a result of the collapse of the securitization market back in 2008...
Is this not a loud and clear sell signal to the retail investor holding Apple stock? Institutions demanding Apple cough up its cash hoard smacks of desperation. The message being sent here apparently is we will get the cash we need, one way or another. Yet why would the board of directors at Apple abide when in a mere matter of months choice assets of all sorts might be had for a fraction of current values?
Truth is money is not rushing into U.S. Treasury securities because value abounds. Rather being revealed is the fact that, we are in the grips of a well-founded crisis in confidence. Only bound to grow in this environment is institutional demand for capital needed to plug serious holes.
—Tom Chechatka
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