OMG it’s 2008 all over! Why it’s not and the over hysteria
Greetings fellow traders.
Hope fingers didn’t get sliced from those trying to catch all those falling knives the past 10 days. A crazy 1500 point plus drop in 12 days will get the heart going. Of course, the calls of a 2008 redux have started but the parameters just aren’t there for a repeat. Here we go
The difference now:
Consumer savings are at all time highs never seen in our lifetime
Consumer debt remains low
Oil has retreated to $85 a barrel (gee who called that dive at $110, pats self on back)
Job loss is not in a free fall
These are just some major differences between what happened after the Lehman failure and now. The country is smarter. We are saving, we are watching our debt. I really think folks don’t realize how close we came to a financial catastrophe in 2008. Due to spending programs, yes I said it, we averted a disaster. We saved the auto industry and those 2 million plus jobs. Yes, we’re not where we’d like to be but did anyone really expect that quick a turn around in 2 even 4 years? If you said yes, you aren’t being honest. Things are better than 2008 and , me being the optimist, believe we’ll improve late 4th 2011 and 2012 will be good. I personally watch the ISM (manufacturing number) and GDP. both very week the last 2 reporting periods. (surprising me as well)
This S&P down grade is nonsense as well imo. I mean seriously, where else would you rather invest? The US will recover and we are the most stable government in the world. The other 2 kept the USA at AAA rating. S&P admitted mistakes in their analysis and STILL downgraded. Some amazing politics. This is not 2008 folks. Trade smart, keep your debt low. The USA is gonna come back. I dare anyone to bet against her.