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[nimblebear]

Economy rip roaring healthy. Many used the money to buy back their own stock. Stocks propped up by more and more and more debt. Not fundamentals. Nice way to raise earnings per share. The problems don't stop with subprime. They don't stop with junk corporate bonds. Amzing what has been masked over the past few years. A lot of the so called growth is a mirage. Central banks will soon be falling all over themselves to open the spigot. Once you start the drug, more and more get addicted. Easy money will continue to be its own vicious cycle to keep the economy propped. Goldilocks. They've repealed the business cycle. There will be no more recessions or depressions. PS(It'll be interesting to see what the bond traders do. Nobody knows who the patsy is.) PPS. And the consumer was driving the economy by taking on more debt (reducing home equity), which made the corp's top line improve. Credit card debt is at blow out all time highs. All these people who have taken on so much debt have not even so much as thought about risk. The risk is about about to come home to roost, as it gets "re-priced." So when you take all of this into account are stock prices really appropriately pricing future earnings ? Can everyone keep taking on more and more debt ?

Edited by nimblebear, 09 August 2007 - 07:57 AM.