Good post EP. The market clearing processes over the last half decade have been proceeding nicely. Many large shocks are already cleared from the system.
Enron, Globalstar, Global Crossing, Worldcom, Dot.coms, over-margined day traders, irrational exuberance, Twin Towers, Taleban, high oil prices, low interest rates, have all been done or underway so long that they are not shocking or making of cascading collapse as I used to worry would happen in the late 1990s as it became obvious that irrational exuberance was due for a hefty crunch to put things back in balance.
We still have to see the completion of interest rate rises and people have still to fully adapt to high oil prices and the deficits have to reduce. Plus there are other fun and games to sort out.
TeoTwawKi is not yet!
With financial relativity theory continuing as expected, we should soon see Dow 16,000 [albeit 5 years later than I expected, Feb 2002 - it took a lonngggggg time to go through the valley of tears].
Mqurice |
