The stock market will likely go higher, as efforts at window dressing continue to be successful — for now.
By Daniel at 23 August, 2009, 9:27 am
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A friend of mine has been trying to buy a house that is in foreclosure. The current owner’s mortgaged amount is ridiculously high, and a modification is required to make the deal go through, as the current owner is underwater. There are two major banks that are owed money and would have to recognize a loss at the closing. They have been dragging this out for six months now. They do not want to recognize a loss, and so the transaction is in limbo. I bet there’s a lot of this sort of thing going on out there…as the banks seem healthy on the surface loan portfolios (and securities built on them) are rotting.
We are setting up for another stock market crash. Meanwhile, the market will keep building toward an ever more spectacular fall.
viking
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