Reply #20: Concern.

[westerebus]

Comrades, in reviewing months of commentary, one becomes aware the warnings issued in many posts across a broad segment of financial correspondence were correct. That in fact, they were predictive. Given the flux of the daily market and the near miss at implosion, we need to make a carefully reasoned look at our present position.
Good citizen, the narrow bandwidth of trading is likened to a string much too taught. That given the resonance of the surrounding strings, one might think the sound is intentional. That when this note is amplified, it is understandably in phase with the other notes being played. These strings are under considerably more strain as adjustments are introduced to tune the notes into balance. What we suspect comrades is we are only slightly tone deaf. Collectively unable to discern unique notes while enjoying the dissonance as we move to the beat. Just where does this lead us? Firstly, the volume needs to be lowered to insure a proper investigation as to which string is defective. Secondly, one should not rule out the possibility that the tightest string is reasonably tuned; that the strings surrounding it are out of balance. Thirdly, it may be the case that the instrument itself is defective, warped or damaged in its' ability to produce some form of interaction that is complimentary. If the latter is the case, no amount of string replacement, fine tuning, detuning, or amplification will correct the outcome. The best played instrument is true to the skill of its' player. If the last statement is true, what have we to to deduce?
That comrades is our concern. Given the imbalances we see daily, the lack of capital flow, the bunkering up of major banks and investment houses; what is their expectation? Cooking the books in good times to avoid taxation and garnering share price is par for the course. But in a post bubble, zero growth, declining profitability, unrecordable mark downs, and with no oversight to speak of, just what model or school have the masters of commerce taken to. The measures to hold onto a 12000 Dow are the modern equivalent of building Rome in a day. They are near panic. That is their fear come true. Fear is the market killer. Fear creates runs on banks. Fear implodes stock exchanges.
Comrades, we can give apathy its' due with justified honors, though we are actively seeking a new direction for the nation? We stand steadfast in the face of the this storm as though we have immunity, where's the justification for that belief?
Goldstein is concerned the party is about to create a new crisis. The temptation is becoming obsessive. Tread carefully comrades.