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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: westpacific who wrote (76166)12/20/2006 7:24:36 AM
From: Mike Johnston  Read Replies (1) of 110194
 
Consider these quotes:

1. "In a normal economy, stock market performance should mirror the economic prospects of the country, but in our case it is a lot different … I think the good rally is because there are very few investment options that can provide real returns," says Patrick Saziwa, an analyst at Kingdom Stockbrokers.

2. "People know where the good returns are. The stock market is one of the few [to offer these] and this is why we see it performing above all markets," says Emmanuel Munyukwi, the chief executive of the ZSE.

3. Some companies have been accused of taking advantage of special low interest rates meant for troubled industries to borrow money cheaply and buy shares, instead of using the funds to improve industrial production.

4. The central bank's recent efforts to mop up excess liquidity .........

Hmm, ... low interest rates, liquidity, speculation instead of production, very few investment options...

Sounds eerily familiar, doesn't it ?

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