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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (3440)	5/6/2010 6:18:20 AM
From: Real Man	Read Replies (1) \| Respond to of 221959

Complex computer programs that take a lot of stuff into account. Programmers themselves have no clue what the machines are doing. A similar situation to you with your model, when at times you go against it, but more complex. -g- The human error is in the credit ratings, since these are often hopelessly delayed and assigned by humans. There are only 3 key agencies, and they tend to assign better ratings than reality, coz they are bot by companies that need these ratings. This actually makes these markets very inefficient. It was the key reason behind 2008 crash, although there were other reasons. In particular, US credit rating agencies will never downgrade US, even though the sovereign debt picture sucks, our debt and deficits are horrible. So? The credit sucks, but it does not get downgraded. When the "event" (SHTF) happens, the markets will crash. -g-