The mkt will be flushed with $5,000B credit to finance and expand business activities, in the coming weeks and months.
Only the fittest co's (Fortune 500, not real estate co's, nor banks.., ) need apply for funding.
Looks like the pain of bears selling is almost over. Most stocks are at bargain basement prices, beaten down and 30%-50% cheaper. It's a 'madmarket' indeed.
quote:
"....though there will be a time over the next few months when the pendulum swings back from outright fear in financial markets toward greed. Which will be no bad thing. "
For 60 years the US has shaped the global financial system and occasionally made threats to get what it wants. In August a new era began.
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http://www.stuff.co.nz/4728243a1865.html ... The financial crisis is now starting to play out toward an ending. Governments have guaranteed bank deposits and the sharemarket has adjusted rapidly toward a new price level that is more realistic about future earnings growth.
Not only have governments guaranteed deposits but they have also, via central banks, flooded the world economy with huge amounts of liquidity.
Lowering interest rates, guaranteeing deposits and flooding the financial markets with liquidity are all necessary steps in order to stop the banking system from seizing up completely, but there is a cost.
There is always a cost, and the cost is in the form of inflation.
There is usually only one way to get out of a financial crisis and that is to inflate your way out. Lowering interest rates and pumping markets full of cash is just about the fastest way to ensure inflation. ...........
None of this is a particularly inviting investment scene right now, though there will be a time over the next few months when the pendulum swings back from outright fear in financial markets toward greed. Which will be no bad thing.
TZL Price at posting:
$2.21 Sentiment: Buy Disclosure: Held
