Now as we start thinking about a test of 1575-1600 highs in the SP being possible, we can ask ourselves is there any difference between the run up from 97-2000 and 04-2007?

Have we actually got any sound reasoning to say that the aftermath of these run ups won't play out again, or to argue that the declines to create these monster rallies were unjustified in the first place and 100% run ups over three years in both these previous periods should be looked at in that context?

Internet run/ Housing run/ QE run? What is, or is going to, hold this together?

Even if growth somehow took hold, how much re-adjustment may need to take shape?

Just to finish with a definition of Ponzi Scheme.

"A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going."


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