The second side of the financial storm

[Donnachaidh]

http://www.marketwatch.com/story/the-second-side-of-the-financial-storm-2011-08-10

NEW YORK (MarketWatch) — It’s easy to finger the bears as a cabal of pessimistic pundits who root against the world but following the worst decade in financial market history, they’ve earned the benefit of their own market doubt.

As negative headlines abound and social mood sours, some might view the mounting malaise as a contrary indicator. One could argue that the prolonged period of substandard performance is on the margin constructive; that a regression to the historical mean would suggest double-digit returns for the foreseeable future.

I would agree, if not for the fragility of the global market construct and the magnitude of the economic condition.

We often discuss the current crossroads; government drugs that mask the symptoms after years of societal largesse versus medicine that cures the disease in the form of asset class deflation and debt destruction and restructuring. We repeat this often for good reason: it’s true. Read Economic Issues Remain.

More at the link --