Trading the markets..... Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Trading the markets.....

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Crystal ball who wrote (3976)	3/10/2001 1:25:33 PM
From: Lee Lichterman III	Read Replies (1) of 4583

Why weren't you complaining about Greenspan when he was injecting liquidity at a pace that fueled the easy gains of the last few years. He is doing exactly what is needed now and the economy will be just fine long term. The only people hurting right now are the ones that ignored history and thought the new paradigm was a real thing just like the ones that bought the bogus story in 29, tulips in Holland etc. Put the blame where it belongs and not on the man that is doing what is needed for the long term health of the economy. I am more critical of his easy money policies of the last few years but also understand he did what he did to aid Asia, Russia and South America during their tough times. He has pulled off things we never thought possible and may actually pull this one off too. I was in the bear camp expecting a hard landing but the most recent economic numbers show unemployment coasting into the healthy 4.5% target, GDP growth is slowing to a sustainable rate and no one that is a real company is going bankrupt yet. I think it is pretty damn impressive so far. Oh, I have some more bad news too. Since things are going so well, I wouldn't be expecting any big rate cuts any time soon. The NASDAQ is still grossly over valued so no one with a brain cares if it gets cut another 25% from here. The SPX and DOW are doing fine. Until there is a real risk of the market collapsing, no one that plays markets based on value cares if the stupid speculators that bought the growth argument get hurt. People that play with fire shouldn't expect not to get burned eventually. Despite the lowering of rates, liquidity is being injected at an unsustainable rate via bond repos and coupon passes. Expect this to reverse soon also and guess what happens to teh markets when that starts getting sopped up. ( Hint - They don't go up) Sorry for the tough talk but I have had it with everyone trying to blame Greenspan instead of themselves for their losses. To reach fair value, ALL the indexes have much farther to go but I doubt we will go that low. Instead I expect a leveling out and a lot of sideways for a while as earnings catch up and the ones that used financial accounting gimmicks to get exposed. ( CSCO, IBM, GE etc)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next