Wednesday, December 3, 2008
Why the Continued Panic?
There are those who, pursuing the contrarian viewpoint, are suggesting that the market might have bottomed. For example, the well-respected Aden Sisters have published Some Positive Signs. Carl Swelling in Very Oversold Market thinks that there might have been at least a temporary bottom. Why, then, if things are beginning to turn around, are the authorities continuing to dump a historic volume of greenbacks on what appears to be a garden variety recession. Well, it's because their solutions are not producing results but are making matters worse and they fear, not a recession, but a deflationary depression. Drake Bennett in the Boston Globe describes "Depression 2009: What Would It Look Like?" It seems that this vision has panicked those who feel that they have the responsibility to Do Something. Not that they have distinguished themselves by their economic acumen, but their apparent fear ought to give you a reason to consider your personal situation with this prospect as one of the realistic alternative futures before you.