Trading Diary & Personal Observations

By on August 28, 2007

The market is set to plunge again since there is absolutely no possible way the mortgage mess will be contained anytime soon. This is going to be at minimum, a three year process of alternating mania and depression, with the emphasis on depression. Bull markets die hard, but this one will die because its time is up. The Bank of America infusion of $2 billion into Countrywide Financial is a joke given the scale of the credit problem facing the U. S. and world economies. It is akin to putting ones’ finger in a dike to stop a coming flood. ARM resets have only just begun. Any advances like the one over the past two weeks are golden opportunities to sell or go short.

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