dcb

Stock Market Rally Is for Suckers as Credit Destruction Lingers

I think this is the start of a bull rally. although the bull has been fabricated by the government and industry. it could run 5 years, eventually if it is a credit based rally it has to bust again, until we move away from a credit based system it aint going to be sustainable. Volker got tid of the credit in the system in 82, therefore we had a rally until the dot com bubble. Greensspan reflated credit, it lasted 6 a number of years then blew up. if we embark on same pattern, we will see same pattern. Much of what happens in the market is determined by what kind of system we end up with.
I do not want to see a credit based system. I think it is going to get shoved down our throats because it involve less pain a does the most to protect vested interests.
Like the 70's to the 80's we could easily see the same pattern. I think inflation will have to get out of hand before any real cures are done.