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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: LLCF who wrote (4098)6/1/2001 5:11:04 PM
From: pater tenebrarum  Read Replies (1) of 74559
 
what's even more disturbing is that with the economic slowdown and the continued excessive ballooning of financial sector and other balance sheets (even the telcos continue to increase their debt load) this ratio has now grown even worse. imo the point has been reached, in both the stock market and the economy, where no matter how much more money and debt is thrown at them, no further progress can be made. the effect of mufu inflows on the SnP has indeed turned NEGATIVE for instance. in 2000, RECORD inflows have produced a negative return(indicating that prices are simply too high). this decline in dollar efficiency in the stock market probably applies to the entire economy now too: as mentioned on other occasions, lower rates and money printing can not solve the problems of industrial overcapacities and private sector overindebtedness...on the contrary, they are liable to make the problem worse, by postponing its resolution.
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