Hardwired For Happily Ever After

Interesting quotes concurring with our option that the market is ignoring bad economic news in Flecks latest...

"The 'word' on the Street now is that the housing problem is survivable. Won't be as bad as people had expected at their gloomiest. Won't interfere with the soft landing, etc., etc., etc.

Greenspan and many others are being quoted, Richard Russell points out, as saying that 'maybe housing has already discounted the worst.'

Isn't this the classic way the stock market works! (The market) starts to hold on bad news, doesn't want to go down anymore on worse news, and instead seductively begins to improve.

Sentiment changes toward optimism, sweeping aside the now widely known negatives, and bids start being raised, as interest becomes increasingly eager on any news, indeed often interpreting the 'bad' to be good, as in 'the worst has now been seen' ... as the rise begins to peak,

(but) proving to be just a big intervening rebound, as it had promised to be way back when, rather than the start of something entirely fresh."

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