To: BWAC who wrote (216846 ) 8/21/2009 8:22:05 PM From: Perspective Read Replies (1) | Respond to Yes, the HFT financial world has completely disconnected from the real world. In prior cycles, that was OK, because the swings in the market were capable of creating shifts in the real economy. However, in a post-peak credit bubble world, I just don't see that tail-wagging-the-dog relationship able to hold true for this cycle. Financial market buoyancy probably won't translate into nearly the same degree of economic stimulus as the typical post-war cycle. And I'm almost certain the credit bubble will continue to gradually fold in upon itself. While there are certainly plenty of examples of huge bear market rallies like this one, I don't know of any examples of credit bubbles reflating once they've hit peak.
