SOS Optimist, Pessimist & Realist

The glass is neither half full nor half empty, it is just broken. Say whatever we like, whether recovery is here, or the worst is yet to be over, the world will normalise over the next few years, i.e. going back to its mean. Don't get carried away by the charisma of the president or his orator skills, or even his promises, review the action taken, use common sense, logic, basics to evaluate.

Well, it may not be as easy as common sense, logic or information we need. Even some of the economic data that comes out may not be accurate, hence, it can delude the people for a while.

Go over the action taken:

• stimulus (credit easing) - BAD move, more debt, cause of problem is the over gearing by financials using the fractional system;
• bailouts - assisting imcompetent company, encourage risk taking on the basis of too big to fail as well as buying up toxic assetsl that does not generate additional economic value
• government nationalising many sectors in the economy, i.e. motor, energy, healthcare, insurance etc. Proven that government allocation of resources is not effective and efficient
• non action against the derivatives

Then again, even if it may sound bad, with the politician and media, most will be deluded by them, so the financial markets may not follow the real economic data, however, when they move too far apart, it will comes back to reality.

MyView

Don't get overpump up if the financial markets does not follow the economic indicators, because the trend of the financial markets follows the social moods.

March 9 = Daily Sentiment Index 97% bearish about the market then it turn

Sept 9 = Daily Sentiment Index 90% bullish about the market (will it turn?)

I believe it will.