ajtj99's Market Pulse

[ajtj99]

There's nothing in that article most in the know did not already know. It's the sales job Washington is doing on this sitaution that keeps most people in the dark. The policy is one of containment and delay so they can attempt to "manage" the crisis to its supposed anticipated bottom, which the believe could be soon. At least they pray it will be soon. History suggests otherwise.

The problem is these things do take a very long time to work out. Debt bubbles take 10-20 years to revert to the mean. That means long and short term interest rates should remain historically low, and it will take time to absorb all the excess capacity created in the marketplace, whether it be residential, commercial, or industrial.

That does not mean the stock market can't oscillate while this is working out. In fact, that would be the most certain thing we can count on going forward, IMO.