1. The Bottom is Not In: This Is Liquidation, The Hard Way

“Mr. Market” is forever ready both to buy and sell, but his view on prices veers from the ridiculously high to the absurdly low.” Benjamin Graham

We are at absurdly low prices now and headed lower.

Deleveraging is a very discouraging process. So everyone wants to know what exactly is happening. We have had a significant decline in the stock markets and interest rates are beginning to zoom higher. Of course higher interest rates cannot be good for the economy. No matter how much private de leveraging has been accomplished (?) the government continues to issue debt to buy debt. Just take a look at nominal interest rates.

Written by Chris Berry, MBA - [ Discovery Investing Web Site ]