re: dow in denial. what russell says
Roberter, I think the point he is making is that liquidity is finally gaining some traction. No-one would deny that the US has been trying to reliquefy for 3 years anyway, but so far without any obvious success.
One of the things that has concerned me is that this drive to boost the money supply will create another bubble in equities, since all bubbles have at their base free and easy money.
The simple analogy which I saw recently is a bogged car spinning its wheels. The driver in desperation revved the engine harder and harder as he sank. Just when I thought he was going to need a crane he must've sunk onto rock, because the car suddenly catapaulted out of the mud and nearly stuffed into a tree. I may be fanciful but I see parallels with the US economy.
Bush/Greenspan have the pedal to the met@l. Is the economy (and the bourse) going to accelerate slowly and steadily out of the bog they're in or are they suddenly going to grip, catapault out and whang (figuratively) into a tree.
I've no idea but I accept the possibility which could mean DOW 10000 by the end of the year. Just remember the tree.
