A lot of talk by experts and government officials: 'the recession is receding', ít bottomed out', 'the rebound has started'.... We must be care full, non of the above and a lot of other claims are TRUE. The fundamentals that made the world economy to collapse was started by the total failure of the US economy; due to mismanagement by private sector managers and the failure of administrators to stop them and to regulate. Same old remedies are not going to work. Today's remedies are just souped up old ones. The fundamentals are not addressed. The other serious new dimension is the pumping of lots of money to resuscitate a dying economy. The remedy will have its own short term effect, too much medicine will give false signs of recovery, but will have its side effects. After a while the economy will be immune to cash injections, thus what do we have? Nothing! What about the side effects, a new toxic hyper inflation, lack of confidence in economic recovery, uncheckable decline. THE MAGIC WILL STOPS WORKING.
The Dow Jones will hover around mid 8000! the danger is when it slides again between end of July and mid September. By then we will be out of magic potion! That is very frightening. A new economic order, a new set of rules, a new regulatory mood and regime is needed. Sorry we have not yet started.
Salaam
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