Indignant more over the market's reaction, or lack thereof, to Fannie Mae's (FNM:NYSE) "mistake", than to the company's action itself, an astute Minyan writes, "The really interesting part is that since the rest of the world is doing stuff like buying U.S. government debt, you really can't see exactly how it cracks.
In short, up to a point (and I sure don't know where that is) it is to the entire planet's advantage to use the ideologically (the body of ideas reflecting the social needs and aspirations of a culture) driven thing or in effect preserve their way of life by preserving ours."
We have written on this subject in the past, but I thought I would bring it up again since it seems to be getting a "little thick" out there.
Although ideological for long extended periods, eventually markets are very pragmatic and brutal for one reason: self interest. While self interest is congruent with the general interest, extraneous forces can alter the markets for extended periods of time. When self interests diverge, markets cannot be controlled.
So it may be that pretense rules the markets for a good portion of the time, but eventually truth manifests itself through self interest.
We look at many things to try to discern what "shade" of pretense currently colors the markets. For example, a study of the Help Wanted index versus GDP shows that while year over year GDP growth spiked today, the Help Wanted index remains at a 40 year low. There is a discrepancy there that must be reconciled.
We find that there are many other discrepancies that in our opinion color the market a dark shade of purple, but that doesn't mean it can't darken to black.
But when the light shines it will be bright and swift.
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