How can this possibly be the making of another bull market???
The last bull market was built on the real estate bubble and people over leveraging themselves. Only way we create the next great bull market is with another bubble. Without leverage the economy isn't running anywhere fast.
Another thing that confuses me is how quick everyone expects everything to turn around every single damn time we enter a slow period in our economy.
It seems that the US economy can NEVER EVER go into any kind of recession, as soon as we see a dip in job growth, GDP or even consumer spending they try and do everything possible to make it as short as they can so that the economy doesn't suffer a setback.
Having the US not go into the deep recession it was suppose to go into after the dot com bubble burst brought us to the stage of the greatest credit crisis in history. Everyone believes recessions are bad when in fact they are needed to create the cycle that is needed for growth moving forward. Throwing trillions of dollars at the economy with historical low interest rates is not the way to go about and fix a damaged economy. As we learned only years ago what low interest rates and great liquidity can do to a global economy in a short amount of time. This latest 40% run you witness today is just a bear market rally. There is no growth moving forward to drive the stock market to new highs, earnings have dropped significantly, job losses are still mounting, foreclosures have yet to peak, option arms are coming due and commercial real estate is still falling apart, aside from that threat of inflation is going to run wild through the markets as bernanke wont be quick enough to raise rates when need be. If everyone is calling for growth to return at the end of 2009 early 2010 how come the fed is still sitting on historical low interest rates???
The last bull market was built on the real estate bubble and people over leveraging themselves. Only way we create the next great bull market is with another bubble. Without leverage the economy isn't running anywhere fast.
Another thing that confuses me is how quick everyone expects everything to turn around every single damn time we enter a slow period in our economy.
It seems that the US economy can NEVER EVER go into any kind of recession, as soon as we see a dip in job growth, GDP or even consumer spending they try and do everything possible to make it as short as they can so that the economy doesn't suffer a setback.
Having the US not go into the deep recession it was suppose to go into after the dot com bubble burst brought us to the stage of the greatest credit crisis in history. Everyone believes recessions are bad when in fact they are needed to create the cycle that is needed for growth moving forward. Throwing trillions of dollars at the economy with historical low interest rates is not the way to go about and fix a damaged economy. As we learned only years ago what low interest rates and great liquidity can do to a global economy in a short amount of time. This latest 40% run you witness today is just a bear market rally. There is no growth moving forward to drive the stock market to new highs, earnings have dropped significantly, job losses are still mounting, foreclosures have yet to peak, option arms are coming due and commercial real estate is still falling apart, aside from that threat of inflation is going to run wild through the markets as bernanke wont be quick enough to raise rates when need be. If everyone is calling for growth to return at the end of 2009 early 2010 how come the fed is still sitting on historical low interest rates???
