Nov 02, 2008 20:45
The recent volatility paints the image of a herd of lemmings running back and forth between two cliffs - with waves of them falling off in each direction. The violent market drops are due to forced sale of assets for liquidity in a market where there are no buyers; the bumpy period is not over as the hedge funds will dump their assets in the coming months to pay out those who wanted to exit in September and October because after the redemption notice period normally around three months.
From other point of view coming soon the U.S. commercial real estate and credit cards busts will make the housing market collapse seem like a walk in the park on a sunny afternoon. A desperate measures to stave off the inevitable crash may postpone it briefly… at the cost of making it deeper and more severe when it does finally occur.
The doctor knows you have gangrene but he won’t tell you honestly that he needs to amputate your foot. He puts a bandage on it. Underneath, the gangrene spreads. Consequently, you lose your life. What use is a doctor like that?