Janice,
>>What I see as a very real problem, though, is the nearly universal bullish bias of
brokerage firms and investment banks. Their business is, after all, to sell securities.
Yes, and I imagine they are all scared spitless that the cascade will start and that they will be forced to sell to preserve their "relative" position in the ratings. When the pension fund people come to report to your business, they can say with a proud smile, "Well the market was down 20%, but we only lost 10%."
I think of it as all of these peach fuzz money managers (average age 29) knowing they are precariously balanced on an overloaded ship, and that if a couple of them move over to the other side, they will capsize. Nobody wants to be the first to start that off.
But maybe that's just sour grapes from an old bear!
Jack |
