Warm_Paw

The Dow: Ominous Parallels to the 1929-1930 Era

I couldn't finish the article.
It wasn't making sense to me.
Past performance is no indication of future performance.
I will say this, the truth about banks and AIG has been suspended.
As long as transparency is deferred, the market will chug higher.
But the truth will come out and then the picture won't be so rosy.
As for AIG, the only reason it's still trading is the Fed.
It's the Feds way of using tax dollars to insure the Credit Default Swaps. Is AIG still a company that earns money - NO.
At this point in time - with the banking system broking - I can only wonder how the DOW is around 9500?
It should be at 5000 and that's being generous. It's probably the influx of govt stimulus floating the market.
No one has a clue what earnings are anymore, if not suspended, earnings are being skewed by accounting changes.
Until the smoke and mirrors susbside, an investor is on a slippery slope putting their money in. No matter what you buy, should the truth surface, you will lose.