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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (29303)	3/24/2005 10:22:34 AM
From: russwinter	Respond to of 110194

Stock market is usually a discounting mechanism. I'm sure you've heard the old saw about it discounting three of the next ten recessions. Right now, markets are failing to not only start discounting one, but even to recognize a severe downturn as it gets underway. The July-October, 1929, is the classic example of something similar. The reason was the same as now, Pig Men were have too much fun leveraging and gearing long Bubble trades, and finally the Fed had no choice but to remove the punch bowl far too late.