Are we headed for an epic bear market?(finally an article you can understand)

MSN Money central ^ | 9/20/07 | Jon Markman

[Eagles Talon IV]

I once owned a retail business, The damn thing NEVER made any money, I kept it for 15 years and sold it at a nice profit. I guess the buyer saw something beyond the books i showed him.

[Eagles Talon IV]

C’mon people, the guy is selling a book here. Nothing sells better then gloom and doom.

Personally I have followed the markets for years and years and have never even heard of this guy. I’m not saying he is not a smart guy but only that he is an unknown at least on the outlets I use to gather info.

[expat_panama]

"...a high level of pessimism is a positive for the markets."

That's what I was thinking, stock prices seem to be doing a great job of climbing our 'wall of worry'.   I've always found it hard work to keep a good hold on reality with all this negativity, but I guess the fact that it's difficult is the reason that it pays so well.

[Toddsterpatriot]

Next time I hear from those that complain about the "trade deficit", I'll tell them that I hope they soon start making a "trade surplus" with their favorite life insurance company.

That would make them happy. After all, a surplus is the only thing that matters.

[the invisib1e hand]

...It is a fact that 35 out of the past 3 recessions have been correctly predicted by economists.

yeah, I know. But it's different this time...

[JasonC]

See above in re "no damage". Cept the dollar, to be sure...

[Eagles Talon IV]

Yes, it’s a “new paradigm”

[Terabitten]

Question: If even money funds are being backed by this bogus debt, what, other than gold bullion is a safe store of value?

If the worldwide economy tanks as badly as the article suggests it will, gold will also be useless. The only valuable commodities then will be the same ones that have been valuable throughout the history of mankind in times of trouble: food (ie land), women, and weapons.

[capitalist229]

The Fed is trying to prop up high debt levels by creating higher debt levels.

After all, Money = Debt, and that is what the Fed does best.

In the end they will have to raise rates to gargantuan levels after prices get out of hand. I wish them luck because there is no political will to do so.

BUMP