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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (3442)	3/14/2001 12:49:27 AM
From: Yorikke	Read Replies (4) \| Respond to of 33421

Collapsing markets are prone to bursts of upward movement. We all know that. As I recall the talk was all very bullish just a few weeks ago. In fact the talk has been bullish by many for over a year now. I continue to await the collapse of the credit bubble. The signs are there that both consumers and businesses are reaching a level of debt saturation. Witness the Japanese utilization of the 'sacred' interest rate policy and its ultimate uselessness. It is unlikely that the Congress is capable of understanding the current economic problems and acting upon them with sufficient timeliness.. The massive cuts in government expenditures that are occurring via executive order show that the new administration is dedicated to its jingoistic goals in spite of what sound economic policy might demand. There is little if any hope that government can move fast enough or with sufficient force to deal with the present situation. Fiscal policy is, for all extensive purposes, dead. The Fed has been reduced to denying the problem, inflating the money supply, exhorting banks to lend to bad credit clients, and urging consumers to go out and buy large cap items like suvs. As Ron points out, there are individual companies and sectors that continue to provide very good investment potential. But the basis of investment is rapidly returning to justifiable and measurable investment criteria: this in spite of the fact that large sectors of the economy are still being driven by dreams and malarkey.