Will the stock market hold...or is the bubble ready to burst?

[Kirkland Laing]

Kirkland....always the happy go lucky, sunshine on my shoulders, today is a wonderful day kind of guy.


A better way to look at things is this way: "Now or in the recent future is a great time to invest"

Here are a couple of articles for you to read. They're written by partner in one of the world's biggest investment firms. This guy is one of the high priests of globalisation, and these articles caused controversy in the financial community when they were released. They're long and have no pictures but for somebody just setting out on the earning curve they're very worth reading. Try taking in some actual facts instead of nonsense, you'll benefit in the long run :

Morgan Stanley - Global Economic Forum


Morgan Stanley - Global Economic Forum

I've just breezed through these articles which were written on early 2006, several months after the start of oil price increases but little over a year before the eruption of the subrime loan crisis. It pretty well illustrates why the theorists' views sometimes fail against what actually happens, or collides with that of what businesses (the practical ones) actually do.

The part about household debts clearly illustrates my point. The author strongly implied that the household debt situation was healthier than what the data were indicating then (2006). In his analysis, he even included the mortgage credits, which is where the subprime loans comes in, and everyone by now knows what actually happened. Let me quote the crucial part of his analysis:


<FONT face="Times New Roman" size=3><EM>For investors, this scrutiny of the data has important implications. Careful analysis of consumer debt service and financial obligations ratios reveals a healthier American consumer than commonly thought. That throws some cold water on the pessimists’ slowdown story, because presumed household balance-sheet fragility is the lynchpin for that scenario. If I’m right about the prospects for improving job growth and wage gains, moreover, my colleague David Greenlaw and I think the housing bust scenario that many investors fear is far fetched. In our view, it would take soaring interest rates or declining employment to produce a bust (see “Housing Wealth and Consumer Spending” and “Home Sweet Home,” Global Economic Forum,

Nobody working on Wall Street will ever state publicly that they think any capital market in anything is going to lose value at any point in the future. Everything is always a fantastic investment and only ever going to improve.

When one of these characters whose job it is to boost up the products his company buys and sells tells you that there's trouble ahead it's worth paying attention to.

[pacfan]

Nobody working on Wall Street will ever state publicly that they think any capital market in anything is going to lose value at any point in the future. Everything is always a fantastic investment and only ever going to improve.

When one of these characters whose job it is to boost up the products his company buys and sells tells you that there's trouble ahead it's worth paying attention to.

Yup, even the news that comes from Wall Street usually paints the rosier side of the picture. They've got business to protect - which runs into trillions of dollars.