SOS Myth

SOS True or False?

1. Bailout is economically is good?


2. Cash for clunker economically is good?


3. Derivatives is economically good?


4. High unemployment is economically good?


5. Printing money is economically good?


6. Over consumption is economically good?


7. Over gearing is economically good?


8. Fed action of reducing interest rate is economically good?


9. Too big to fail for financial institutions is economically good?


10. Unsustainable growth in GDP is good?


11. War is economically good?


12. High demand in war business is good?


13. More lending is economically good?


14. Liar loans is economically good?
15. Big government is good?

MyView

What is good? Just answer the above questions and you will realise the actions will resolve the problems, prolong the problems, inflate the problems or simply cause a bigger problem.

I believe the action taken by the Fed or the US Government is economically not good, but, why do the share market goes up if it is not good? Well, market follows social mood, and driven by social mood. Media and earnings are important and used as a lagging tools to explain the up and down of the market, but does not help in any way provide an accurate long term forecast, because it does not capture "black swan event".

Ever wonder why the black swan even happen, well, if you read the elliote wave chart, you won't be suprise by the even because you have predicted the event with high probability.