Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Tuesday, February 12, 2008

Inside the Wall street bubble

I've visited New York a few times, I'm convinced that the Delusion that our economy is bullish, stems more from the point of view that New York is relatively clean, and that crime has been lower that it's recent history.

When you go out into the rest of this country, you realize that the only prosperity in our country in the past 7 years, has to do with the securitization of loans. People in the financial industry. People building homes.... That was the only strength in our economy.... that is gone now. Now we are left with the economic skeleton that is our country. The Fast food, and Big Box Stores.... Unfortunately this economy is not sustainable, the Supply driven economy of excess is on it's heals....

It is not believable that wall street is going to convince itself that somehow things are a buy at this level. Inflation will have to be placed under control. The consumer is under some serious fatigue. Even the highly educated are having a difficult time finding decent jobs. Besides the illusory growth created by inflation.... This market has gone nowhere in 10 years...... 11500 is it's flat line level.

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