How can the economy go on a recession path if the stock market is making new highs?
Nina Shabab
Oct. 7, 2007

That is the million-dollar question among the investors in the Wall Street and common people in the main street. Normally the stock market will go lower six months or so before the recession.

The reasons are simple. What has happened in the stock market and other financial markets is that lot money is floating in the hands of a few people. The hedge funds dominate the markets. The private equity funds calls the shots in the market place these days. The private equity and hedge fund managers are cut off from reality. They are playing piano while ‘Rome’ has started burning. Talk to them and you will realize they ‘know it all’ and they believe the economy is in the best condition ever.

That is exactly what happened in 1929. The market never gave any indication that a great depression was about to start.

The real estate market, the mortgage scams, the food and energy inflation, the scarcity of well paying jobs – all point to devastating fundamentals in which some ‘rich kids’ are just dancing thing they are in heaven.

Even moderate talk show radio hosts are bullish. The problem is that all bear markets start when market players get detached from reality and start creating a bubble based on what they believe. This time it is no different.

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How can the economy go on a recession path if the stock market is making new highs?
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Even moderate talk show radio hosts are bullish. The problem is that all bear markets start when market players get detached from reality and start creating a bubble based on what they believe. This time it is no different.
READ MORE>>

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