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Strategies & Market Trends : SiliconInvestor All Stars Forum

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To: John Vosilla who wrote (289)2/26/2007 1:49:06 PM
From: SouthFloridaGuyRead Replies (4) of 1718
 
Prices move down when the collateral backing them is shit. The underlying equity collateral of US companies is solid and undervalued. Subprime ABS and US corporate debt <and hence equity> are just not comparable.

The only way stocks fall is if the Michael Shedlock doomsday scenario proves correct: housing Bubble is so enormous that the subsequent sector credit crunch cripples the US economy and brings down other sectors with it in a deflationary wave.

I don't remember the TMT debt bubble bringing down housing (in fact it stimulated it) so I'm not sure why the opposite is true.

No market indicators even remotely point the to the mishedlo theory being even 2% probable.
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