dow, page-19

foolsandhorses

I think that with every market decline we get closer to a depression.

No one can argue with the excesses in so many areas.

Recessions are a good thing for economies as it cleans out some of the filth, and you hear of constructive destruction.

Bailouts and excessive government mitigation although welcomed at the time is like placing a bandaid over a gangrenous wound. The smell seems to go away and things appear better.

But it is a rule of diminishing returns.

The more they do, the shorter the recovery until death is inevitable.

It may be this time but who can know.

In July last year, many of us were arguing for a major correction and were told that the fundamentals were so strong that we hadn't seen anything yet.

We saw a correction that would basically last into March this year and here we almost are.

Now many of those same Pollyannas are calling for the end of the world.

I am not suggesting you were in that category, but it is amazing how sentiment can change so quickly for so many, after the event.