Early this morning one trader summed it up.

The market is oversold short term and will provide “traders” with an opportunity to make money as the market goes up. However, in that same analysis, the trader said, long term it doesn’t look any better.

The market is filled with short term traders now. There are very few long term traders left (big fund traders aren’t in on a daily or weekly basis enough to help). This is not a buy and hold market for the faint at heart. There will be volatility that surprises on the up and down side for a long time as this depression plays out.

The thing we have to remember is that no policies have been changed that got us in this crisis and none are planned and even the reforms that are needed would first cause a major depression. This is not something that can be fixed. It had to be avoided several decades ago. We have just kicked the can down the road for decades until only “bubbles” create illusions of growth and we are running out of road.

Whether it is months or a couple years, the trend is still in place. The ex-comptroller general was interviewed this week and said it would take double digit economic growth for decades to help. A mature economy is lucky to get a quarter or two of 5% growth and then we would have to not have any more recession in a nation that uses bad economic and monetary policy.

- JanPaul

Related Posts:

• Speaking now in CNBC interview: Virtually every statement he makes involves, we need more lending.
• The solutions have been provided but, nobody likes them because they cause a depression.
• This recession is far from over! We’re just lucky that it did not turn in to a full depression.
• Sign of bad economy: December consumer spending data is worse than expected.
• 2010 will make 2008 and 2009 look like a cake-walk.

Leave a comment