tag:blogger.com,1999:blog-1529519433734975958.post181924379521831673..comments2023-11-05T01:32:12.181-08:00Comments on Mock The Market: Are We In a Bear Market?K10http://www.blogger.com/profile/00635420185722095187noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1529519433734975958.post-41571966312803814342008-03-31T11:26:00.000-07:002008-03-31T11:26:00.000-07:00Where did the money go you ask K10? Its Bill Gros...Where did the money go you ask K10? Its Bill Gross and Paul McCauley being proven right.....The Shawdow Banking System in all its glory. If this asset bubble was created by excess leverage to begin with and overinflated our economy then the deleveraging or the "sucking out of that excess capital" is not going to be very positive. If you consider our GDP is around 14 trillion and 70% comes from consumer spending, then taking money out of the consumers hands is not going to be very good for us going forward is it? I just don't see how the negative wealth effect of declining home prices nationally is not going to have severe ramifications going forward. What would another 10% decline mean in terms of consumer spending. All I know is that my mother has asked me on more than one occassion lately if she should take some money out of her bank. People are nervous and when that happens a defensive strategy is almost always the outcome. That means, no buying or spending on new items and that is going to have a very real effect for all parties involved.Unknownhttps://www.blogger.com/profile/09582869875448878789noreply@blogger.com