Not really a "smart move" per se. Rather, debt eating
all my income/don't care about my credit/no other choice
kind of move. That, plus losing a job. Luckily the job market is
not that bad YET, not everywhere anyhow. Detroit, MI?
High paid jobs were exported to Asia, while J6P lived by
refinancing his house. That was 2002-2007 recovery in a
nutshell, engineered and cherished by Alan Greenspan.
I'm surprised it lasted that long, and stocks went to new highs.
Just bubbly new derivatives products and computer program
demand from hedge funds on huge leverage, I guess. We have been
in denial phase for some time. First, subprime didn't matter,
then hedge funds, then banks and declining home prices. Now
Bear must be the bottom cause it's large and S&L was large, that
was the bottom. Stocks are in denial.
The most important one - the Fed put will save us.
The Fed simply can't bring the credit bubble back, it's over.
There could be a rally on faith in Fed powers to save us,
though. A bear market rally. |
