I called 7600 last friday .. http://stocktradinglessons.blogspot.com/2008/10/tighten-your-seat-belts.html
Okay maybe I was a bit agressive Im going to expand these levels to 12000 for 2010. I think we test 9000 this year again then rise to 12,000. If credit is not released soon there won't be any credit worthy people left.
Credit, and if they release credit and start making these loans what's going to become of this economy. Throwing credit to people isn't going to do a damn thing but create more problems. Why would anyone want to open up a storefront selling flowers, shoes, food or any other small business at this very second. There is absolutely no demand for these type of services or products, take a look around your area and take notice of all the empty storefronts, near me there is plenty of space available, what makes you think that if they can get a loan and open up a business that they will become successful in this economy. Take a look at people filing for bankruptcy, millions upon millions these last few years. The flow of credit will prove nothing at this point.
If you have 30 thousand dollars to open a biz and you can leverage 100,000 and make payments then you can afford to make revenue. OPM Other People's Money is the way many businesses thrive. If you take away capital access you take away confidence. The storefronts you see that are empty were once filled in the prosperous economy. In 1990 We were right where we are now. In 17 years from now we may be back but in this time frame we rode the rollercoaster up and down. BIZ 101 always use OPM when available. Its called ROI. If you are a trader then you must understand that Margin is a loan.
Prosperous economy? You mean the inflated asset bubble economy. The last 2 decades have been filled with nothing but bubbles. The same is happening now, liquidity is driving up prices of commodities and creating a false sense of what many think to be a thriving economy.
Boom and bust periods and incredible bubbles and depressions all over the world are part of economic history of the last 250 years, IMO they are not unique to the last two decades. Just remember to trade it long on the way up and short on the way down, not the other way around
Im sure they are not unique, however trying a million different ways to keep the economy on its feet is certainly unique in the way that they cannot let a true downfall in the economy take its natural course. There is always too much intervention involved.