Insane bullishness. There is a panic to buy equities. Bearishness and the depression were forgotten in a week! Look at the equity put/call ratio. It is at a level recently associated with short term tops.
Astonishing - scenes from the recession:
- I have seen residential lots like this sell for $1000. They cost 10x that to create. Loss severity.
- See this picture? It is really expensive to get rid of those weeds. Loss severity.
- The future of car dealerships: auctions being held in these car storage spaces at ports.
- Is this bullish for Best Buy (BBY)? Bigger piece of much smaller pie.
What do these four pictures have in common: they describe completely broken sectors of the economy - housing, autos, and retail.
Have you heard any plans to fix the auto industry? Not prop it up, but figure out how many cars a non-bubble economy needs annually, and then figure out an economical way to produce that quantity?