Fredrik

Recession, Rate Cuts and Stocks: Why This Time It's Different

good call!


On Dec 01 05:38 PM jepittman wrote:

> OK this time its different. It appears you are solidly within the
> consensus here. Bearish sentiment is very high and risk aversion
> is at a record. There are virtually no returns for ten years in a
> treasury bond and the corporate market is virtually closed. Short
> term interest rates around the world are plunging and gasoline prices
> are at multi year lows. There is a new and popular president about
> to take office whose intangibles are off the charts. Huge fiscal
> stimulous packages will be passed and implemented within weeks not
> just in the US but also in China and other countries. The US Federal
> Reserve is engaged in unprecedented monetary stimulation - the money
> supply is going hyperbolic. The banks have recieved billions in capital
> injections and are being told in no uncertain terms to lend to qualified
> borrowers. Large banks are being backstopped and the Fed is buying
> mortgage paper by the billions. As a result lower mortgage rates
> are allowing homeowners to refinance their mortgages. The news flow
> is a constant drumbeat of negativism. Everything is given a negative
> spin as the fires of fear are fanned. Yes its different this time.
> None of this matters. Its just all going to he--.