One day movements are no indication at this point (volatility like we haven't seen for a long time has been ongoing for a year),... through this the old "recession retreats",..... gold and oil have gone back to where they should be,... my prediction was true on those in jan 08, the stock market I thought would correct by now,... I was wrong there,... The dollar has moved up since jan 08 as I thought,... and will make strides up,... those who want gold are going on fears and will be mistaken, oil will bottom out soon,... it used to be at $72 prior to the craziness,.. I see it a bit higher than that at its bottom.
The problem is what I call the "mass mentality fear", which has followed the "ignorance, infomercial greed" and if you have no clue to what I am saying,... real estate had unprecedented gains,.. everyone gets tempted to fip a house, there are informercials, books (kiyosaki is the worst), conferences, etc,... everyone flips 5+ houses which noone should do in reality,... the market gets saturated,... people bail, banks and some get left holding the bag, the others go to gold and oil,... those get inflated beyond reason,... they get bombed when reality sets in,.. some who can luckily time make money (and noone should count on timing).
Now we are left with too many houses and too many loans because everyone from,
illegal immigrants, speculators, average joe wanting a piece and the businesses, and now we have a bubble,.. the bubble is huge and doesnt go back just to those who caused it, it is burst all over,...
The more the burst,.. the more the average person who didn't get into the first part is scared and starts worrying. Now these people are stage 2, they think the sky is falling and want to get out of stocks,.... what happens when there is a downward pressure to sell stocks??? They go down!!!
Stage 3,... noone has the extra cash due to Americans having an instant gratification spirit now and negative savings rate (unlike any past generation). People leveraged themselves to get into the housing frenzy and now cannot unwind their own positions. Businesess get caught for their mistakes in lending, but also have double pressure from what individuals and American society has done,...
Stage 4,... public outrage due to the American way (we cannot blame ourselves,... blame others),.... we demand the government correct this,... the government is trying without overdoing it,...
Now I generalized the public, it is that way as a whole, but there are individuals that are blame free and financially responsible who this does not apply to (stating as such, so those hate responses are done with)