SOROS, Re: Taking one's medicine for past mistakes is not easy, but it is necessary if things are ever to be washed out so real solutions and growth can be restored.
This should be the Democratic party's theme song...they have fractured themselves through repeated failure to face truths, whether it be 1996 and the Clinton focus on a rising market, the war on terror today, and, most laughable, the NJ Senate race conundrum. It is as entertaining to sit back and watch this NJ debacle as it is to watch bulls today.
Re: Greenspan could have taken care of a lot of the problems back in 1996 when he KNEW if [sic] was "irrational exuberance", but he could not bear seeing the markets go down and the resultant pain. Now, everyone is paying for his lack of conviction.
Greenspan has no spine. He is a will 'o the wisp, who ignored his own conviction/understanding of the markets in order to please the Clinton crooks and pump the economy for the '96 election..."Its the economy, stupid." Yes, today he is doing the same thing by repeated rate cuts. However, he is now trying to save his legacy and his "Knighthood", and perhaps his manhood, I don't know...<gg> Another cut will account for nothing more than a spit in the wind.
While I am on this track, SOROS, the 30-40% down we will see by next spring will not be the end. There will be plenty of ramps and dumps along the way to make sure we don't run out of bagholders, but IMVHO, this thing will go on 'til we see 1990 levels... stockcharts.com[h,a]macayiay[d19900101,20021001][pb9!b13!b20!h.02,.20!b200!b150!b50!f][vc60]
This is why it is so important to keep one eye on gold as a component in a balanced portfolio...along with all those ndx & spx shorts...<gg>
The high point of my portfolio happened over a year before the end of Clinton's reign....and the Democrats, all of whom have no recollection of anything earlier than breakfast, lay this recession at Dubya's feet. As we used to say in rodeo, "The higher they fly, the harder they fall." That applies to pumped up markets, whether extremely long term cycles or on the daily "paint" we see on the charts today. We live in a dangerous world, economically and politically...everyone should see themselves, and others, as one of these three types...
"Mankind [is] naturally divided into three sorts; one third of them are animated at the first appearance of danger, and will press forward to meet and examine it; another third are alarmed by it, but will neither advance nor retreat, 'til they know the nature of it, but stand to meet it. The remaining third will run or fly upon the first thought of it."
John Adams (1735-1826)
Before 9/11, I had no clearcut view of where Dubya fit into this statement...after 9/11, he is definitely in the first third. Today, Joe Lieberman and Dick Gephardt are now in either the first or second group. Daschle is in the first group when it comes to partisan politics; but when it comes to defense of the country, he is in the last group...IMVHO.
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