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To: aimhigh
Yep. Too much irrational exuberance leads to real panic, the moment investors realize that their expectation is mostly imagined.

There are people who believe that as long as our perception can be manipulated, we can indefinitely sustain the current status quo in the financial market. This is basically advocating outright propaganda to distort the truth.

People panic when some car is about to slam them at 100mph, or teetering on the edge of cliff. It is a response to imminent danger. On the boom cycle, people are urged to brush aside potential dangers, and merrily buying up securities of dubious kind. At some point, people develop second thoughts. They suspect valuation fraud and try to pull out. Then they are urged to hold onto their junks, because they should not be irrational.

Those who should know better pushed valuation fraud to keep financial market afloat, but insist on denying the duped customer to pull out. They do not even have the orderly retreat strategy. Their game plan is to dupe the sheep as long as possible, until they cannot do it anymore. Then they will turn around and say that they should be responsible for their decisions, and those who made bad decision should pay.

This valuation fraud game has been going on too long, to the point that I hear even financial professionals are feeling anxiety.

11 posted on 08/12/2007 9:15:24 AM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: TigerLikesRooster

Good response. Question - is the bond market still a safe place?


14 posted on 08/12/2007 9:24:24 AM PDT by aimhigh
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