Disconnect from real economy
01/07/2009 § Leave a comment
This scenario is familiar. It is reminiscent of the market heyday in the later half of 2007, when college students put their tuition money into stocks, and housemaids and monks joined the long lines at securities brokerages to trade. My father, who made his first and only financial investment – a small sum in a mutual fund – one and half years ago, excitedly told me over the weekend that he had recouped his losses of almost 40 percent. He said he was determined to hold on to the fund until he made a "moderate" profit.
That’s the alarm bell – when the average Joes are enthusiastic about the market – of the mania approaching danger level.
I am not alone in this unease over market euphoria.
"Sixty percent of the listed firms forecast losses in their to-be-released interim report, and we are talking about a bullish market. Isn’t it insane?"
As insane as the bankster scum encouraging this silliness!