Econ 101

Wall Street Breakfast: Must-Know News

In 1918 the Spanish flu had a small impact during the spring, but subsided. The powers thought that it was over, but in the fall it took over and killed 50 to 100 million people worlld wide. If that percentage were seen today it could translate into half a billion deaths. Unlikely, but possible.

This ralley is like a Tsunami. An unseen event takes place (like an underwater earthquake). In the real world it is these profits of the financials that came out of government bailouts and GS insider info. When the water pulls back to reveal prettty shells (not unlike these earnings "surprizes") fools rush to pick them up. Those same fools will drown when the waves crash over their heads.

There is too much optimism everywhere for the pridicament we are in...STAY OUT

We will see DOW 5000 before we see DOW 10,000

Cramer's Mad Money - So Long Great Depression II (3/2/09)

Think of a Tsunami, First an earthquake happens where you dont see (the sweetheart deal between TG and GS to pour money into corrupt and bankrupt banks) that causes the ocean to pull back (this new "Bull Market" according to JC) revealing all thoise pretty shells (the cheap and now valuable stocks). When the peoplerun out to collect the pretty shells they never see the huge wave comming to kill them. The smart ivy leaguers are waiting to fleece the sheep.

In JC's own book, Sane Investing in an insane World, he gives an example of just this same thing.