hammerhead

The Bear Turns Mildly Bullish

Crashes do not come from overbought markets. They come from oversold markets. By your own admission, this is an oversold market. 25% of the US is in serious recession, 5 out of 7 monolines are toast, cash strapped states will have to raise muni bond yields in order to borrow in this uninsurable market, the weak GSEs are the only entities holding up what is a modicum of a housing market, we are the greatest debtor nation in the world, our citizens can't pay their credit card debts, our banks need infusions of foreign capital to stay afloat, our troops and resources are bleeding in Iraq, and we have a financial genius for a President. Yep, no reason for this market to continue its decline.