CoinMiner

New Bull Market or a Bear Market Rally?

Another beauty of suspending mark to market accounting is that rather than servicing actual debt and malinvestment, the trillions of digtal reserve notes can directly bloat the book value of every company.

Sure the markets can reach new highs, all the while losing value with each new plateau!

S&P P/E Ratio Is Low, But Has Been Lower

While price has started to look attractive, it has looked that way for a while (think of the same mantra as hears last October, last November, this January, last week, November 2007, etc). Unfortunately, these 'analysts' have forgotton the other side of the equation: Earnings.

Funamentally, why will GM, BAC, GE, or any of the other sickly large american corporations begin to earn more money next quarter or even next year? They won't, the fundamentals aren't yet there (the consumer is retreating back even further).

Moreover, those earning statements in 1929 and 1991 didn't have the same 'pro rata' bias which propelled the Nasdaq and SP into bubblemania in the late 90's and early 00's.

An even more systemic problem is the current finance 'leaders' search and push to do away with that pesky 'mark to market' requirement.

Stay sane out there.

Great Depression Not Imminent, But Inevitable

As noted above, the corruption present al all levels of governmental management and regulation will no allow speculative positions to fully deleverage or unwind completely. An organic depression is natural to both the credit and economic cycles. However, the populace have heretofore supported shifting the deleveraging to other pools (TBills), clients (asia) and future generations. This compliant acceptance allows the continuation of such policy - indefinitely (or until public acceptance changes).