Legislated Bottom

Santelli just phrased it rather eloquently. This was the worst lending cycle in history, far worse than the S&L’s, and yet the markets are down far less than any major correction in recent history. Tell me if you think this makes sense.

Maybe it’s because it hasn’t spread out in a major way to other areas of the economy. Sure, there are job losses every month, but the mild recession of 90-92 had more job losses. Sure people are losing their homes but the homeowners that were disciplined and lived within their means (the vast majority) are not in trouble of losing their homes. Another reason is because the Treasury and Fed spend hundreds of billions to try to solve the crisis.

Wego- That may be true for the U.S. markets, but when EFA was hitting $55 & $56 last week that was more than it’s ever gone down in any year since 1970 (that’s as much data as i have).