When they let LEH and BS go, they didn't realize the fallout of the market making biz. That's what they don't want anyone to know about. Smart people already do. But like I said, it's understandable why they did what they did and are doing what they are doing.
The next leg down is going to be a classic definition of a 5th wave. The psychology being that there just won't be the appetite for holding stocks if they appear to be falling out of bed again. This is when you get your true capitulation. The final, 'F' it!
There's still too much optimism out there. Just look at the PEs of AAPL, RIMM, AMZN, BRCM, etc. Why would you pay over 80x AMZN earnings in THIS environment?
Do it with your money. Shorts most likely the screwed ones. They just never learn -- don't short AMZN.
I think BRCM is a monster short here. But the market is going to go down simply because people just don't have any more money to invest big and the leverage is gone. The prop up money from the TARP as I explained is probably already used up. It did what they needed it to do. So, any future selling will appear to be just a typical normal selling cycle rather than something more ominous as was the case last Fall.
