The Market Is Overbought, Overextended And Overvalued: "
.. continuing high unemployment, a moribund housing sector, the dire condition of state and local finances, a lack of readily available credit and the ongoing fragility of a banking sector that is still loaded with toxic assets that are significantly overvalued on banks’ balance sheets.
Comstock Partners at Business Insider
EXCERPTS:
As it stands today the sharp rise in the 10-year Treasury bond is likely to further weaken an already dead housing market by enough to offset any additional growth that QE2 could have provided.
Another major headwind to growth is the ongoing need to reduce household debt to normal levels after the credit binge of recent years.
As if all of the above weren’t enough, the chances of financial and economic crises overseas, particularly in Europe, China and Japan are exceedingly high. The turmoil in the European Union is not a temporary crisis that will be cured with the wave of a wand.
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