Re: Are stocks pricing in a Recession, a Depression or a Great Depression?
Originally Posted by stumann
and never before have we had a $700 Trillion Derivatives Monster fed by deregulation and greed. the market dislocation we are experiencing will be worse than the Great One because "real" growth in the 1920s was higher than now. The fact remains that majority of the "growth" we've seen since Greenspan took over at the Fed as been due directly to the growth in derivatives. The world is growing much slower in 2008 than in 1929, while the debt far higher - econ 101 - if growth is half, that makes the same debt DOUBLE....a scary picture when looked at from this perspective... and a good indication that stocks are still over-valued by a factor of 3-4!!!
I figure the DOW will revert to pre-Greenspan levels...but I'm nuts!
Not nuts at all, but one must be carefull. Timing is not easy, EJ understands this.
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