Cautiously optimistic

[AllentownJake]

The markets seemed to have recovered somewhat and as long as things turn somewhere to lower appreciation in the markets over a long period of time I'll remain cautiously optimistic.

My only concern is that when something shoots up 50% in a 7-8 month period it could be signs of a bubble. Since things shot down more in a short period of time, there is a possibility that it is a realistic value.

Time will only tell.

Hopefully the bleeding stops in employment in the next 3 months. If the wound doesn't start to scab I'll worry about the longterm stability of this rally.

[MellowOne]

1. It's bonus time for Wall Street

Read the following article I posted in the Economy Forum and StockMarketWatch.


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x71046

[marmar]

2. I just don't know about the conflation of the market's health with the health of Main Street....

..... Seems like that paradigm no longer works.

[Chulanowa]

3. It doesn't.

And hasn't worked ever since business expanded past "main street". The prevalence of the corporate entity, the nationwide franchise, and such things has essentially divorced main street and wall street. A company can do well in business, even as its individual operations fail and die all around it. All they have to do is say they're doing well.

Unfortunately it's not a clean divorce. If wall street hits a slump, it clobbers main street. Sort of like an angry drunken ex-husband coming home.

[AllentownJake]

5. Mark to Market Accounting

When assets were appreciating in price, Wall Street lobbied heavily for it. When assets declined, they lobbied to have it repealed.

JP Morgan would not be reporting a 3.6 billion dollar profit today if Mark to Market was still the accounting rule.

[AllentownJake]

4. Main Street isn't going anywhere

until Wall Street is happy.