conciously_naive

The Stock Market Is Not the U.S. Economy

I find it funny that people still think anyone with a bullish tone is an ostrich with its head in the ground. On a daily basis, I must hear about 10 people say:

"what about all the delinquencies? The CDO's? The hedge funds are cooked. Unemployment is going to spike!!!!"

Congradulations, you read the July edition of the Wall Street Journal. Anyone bothering to pay attention to the market over the past 12 months has know that we were in for hell over this housing bubble burst. By the way, a distinction should be made between the housing bubble and a stock market bubble. The S&P was trading at an average of 18 times earnings before the sell off, which is hardly a bubble.

The point the article is making is that the market knows that the economy is in for a very rough ride. People keep posting negative sentiment stuff, and then 20 more people post negative comments, and then everyone thinks they are the only ones with a clue. Do people really think that everyone is a cheerleader still? I struggle to find any optimism these days.