Pasobill

The Two-Ton Wall Street Conflict of Interest Few Dare To Talk About

Wall Street has always had a conflict of interest. They make money by being bullish and investing 100% of your money regardless of the economic outlook. Mutual funds think they are very conservative when they have 8% in cash. I have never understood why they don't raise large amounts of cash when it becomes so obvious to all that markets are not going to perform. They all brag that they do better than the S&P but who wants to lose 20% and be content. In my opinion one never loses when they raise cash and wait patiently for better days.

Market Outlook: Watch Out, the Signs Can Be Deceiving

The Fed has only bailed out Wall Street and the greedy errors of the large banks. By continually printing more and more money for these bailouts the Fed is setting us up for a 1970's type inflation with huge growth in interest rates and continued price inflation in the commodities that the average American cannot do without - food and energy. It is hard to see where the Fed's actions are going to help the people on Main street! And Michael is absolutely right - market bottoms do not happen in a day. the technical damage to this market is so bad it will take a long time to repair. In the immediate past we have been spoiled by quick turnarounds but history shows that real bear markets can last years not months.

Market Bears Take a Breather

Many of the young "hotshots" on Wall Street were toddlers in the late sixties and 70's when the economy suffered through Stagflation. The present situation is a carbon copy of the 70's when inflation started to run out of control and yields soared while the economy faltered. Isn't it interesting that after each drop in the Fed rate the markets continued to fall. The economy runs in regular cycles and the Fed can do little to stem the tide!