why i am still bearish, page-20

“The current subprime problems and talk of US going in to a recession make you understand why Dr Greenspan warn the US economy is going into a recession early this year. He was criticise back then for making such a comment and I guess they should not under estimate him as he knows what he's talking about.”

Very true. No one can know that better than the guy who created it.

Subprime fiasco was just a reason for a seasonal correction that was waiting to happen. How can a minor 2% slice of the economy have a major effect the market? Bears here keep saying that it is a chain effect that will run through the wider financial sector however, the financials and the policy makers can easily negate such effects without damage. Anyway, policy makers will have to work overtime to keep this going if necessary as of this month current Asian economy ( in total) is twice that of US of A and growing. Effects such as subprime will not be noticed at all in the near future.