Have you heard this one? “Stock markets are up . . . the recession is over . . . the economy is strong . . . blah, blah blah . . . ”
We’ve developed a little bit of a problem in this nation. We believe everything we’re told, and that line in “Duck Soup” comes to mind: who are you gonna believe, me or your lying eyes?
We’ve fallen for an awful lot of stories that in retrospect were clearly lies. That baseball players weren’t taking steroids. That the market’s efficient. That earnings don’t matter, a chestnut from the dot-com boom. That home prices can never fall. That Iraq had something to do with 9/11. Now, of course, we’re being told the markets are healing, that the economy’s recovering, that we can as a nation get tens of trillions into debt and somehow manage it all without so much as raising taxes.
It’s time to stop buying fairy tales. (Source)
Here’s a reality check courtesy of Rosenberg – Katana Capital. (Source)
From David Rosenberg of Gluskin+Sheff.
Prefer a detailed discussion? Check out this related article posted 1/11/2010: http://www.safehaven.com/article-15459.htm