DNAprint Genomics (DNAG)

[DougS.]

OT - No. Both the market and the economy have been sustained by a massive expansion of credit over the last year, i.e. it has been held up by liquidity rather than improving fundamentals (fundamentals being a healthier trade balance, reduced deficit spending, wage growth, improved participation in the labor force, and the creation of wealth - we have had none of these!). The problem with this is that the amount of credit and/or wealth creation necessary to sustain what recovery we've enjoyed thus far is remarkably steep and, imho, unsustainable over the next 12 months.

Too many "economists" are looking at this economy as if it were a perpetual motion machine that moves of it's own volition...I don't think so. If the market tanks from where we are now then we'll likely have a mid-summer rally but longer term, I think we've seen the end of this mini-bull and a resumption of the bear. IMO, the highs are already in and now it's just a question when "investors" figure out that the line between inflation and deflation is an extremely fine one and has been reduced to what amounts to a high wire act.