THE “LAST BEAR STANDING”
8 August 2009 by Cullen Roche
5 Comments
Good stuff here from John Mauldin:
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Comments
Wishful thinking. He missed it. We will not see 666 for a long time. Liquidity, increased business and consumer confidence, rebound in capex spend, some rehiring will take this market to 1100 spx in 3-6 months. The big gains are over, but those dreaming of an impending collapse are … only dreaming
It’s guys like that who will slowly keep feeding the bull. Note that he’s changed his tune; he’s now saying that stocks are “ahead of their fundamentals”, but admits to a generational low.
http://www.usatoday.com/money/economy/2008-01-21-japan-parallels_N.htm
“In Japan, deep uncertainty about the health of Japanese banks impeded recovery. A large proportion of banks’ assets were loans that had been used to finance commercial real estate, which in the post-bubble era few wanted to buy because property prices were in free fall. But rather than write off the loans, Japanese banks extended additional credit to borrowers, allowing them to at least make minimal interest payments. That made the banks look healthier than they were, at the cost of impairing the flow of credit to new businesses.
…
Japan, likewise, sought to spur a near-lifeless economy with fiscal adrenaline, ramping up government spending on public works projects, including bridges and river “improvement” programs that literally lined many waterways with cement. So many projects were launched that the share of the workforce employed in construction hit an extraordinary 12% — higher even than the figure reached at the peak of the real estate bubble, according to Posen.”
You people are fools. 666 might not be tested, but every bottom has been double tested since 1900. Why is this different?
perhaps with GS and the Fed buying SPYs it might be prevented but the pullback should be coming. Unless the beautiful thing we know as inflation takes hold and then it really starts to unravel.
RAllytime. Sure thing fools.
This guy’s ego is far too big. He is constantly claiming to have been right about everything, yet rarely, if ever, voices an original idea. I only ever read his letters when written by someone else. He is a lightweight and a bore.