Smarty_Pants

Fear the Market or Fear Yourself?

The question to be asking at this point is:

Was the SPY really worth $156 given what we now know about all the toxic MBS garbage on balance sheets the world over? An honest analysis would probably determine it was not. So the "fall" from $156 to $90 is only the market seeking a proper price for SPY.

Given that nobody really knows what sort of liabilities are still hidden in level 3 balance sheet nooks and crannies, it is impossible to determine an accurate price. $90 may still be too high. It COULD fall a lot further.

You ask "has essentially every stock become 42% less valuable?" and answer "probably not". What facts brought you to this conclusion? None is presented. Has doggedly insisting "it's not so bad" replaced financial analysis of corporate operations? Is this not an emotional reaction?

Here's a link to another author's actual look at the numbers. He arrives at a different conclusion. Maybe he's right, maybe not, but at least he shows his work and allows readers to decide for themselves.

seekingalpha.com/artic...

Closing your eyes just before a head-on collision doesn't prevent the accident or make it hurt less.