Delusional Stock Investors and Credit Crisis Vultures
Stock-Markets / Credit Crisis 2008
May 05, 2008 - 04:43 PM

By: Dr_William_R_Swagell

The actions of Central Banks over the past six weeks have helped global markets rebound from their mid-March troughs. Markets that were down 20%-40% from their peaks of last year have now rebounded 8%-10%. So are we now about to launch into a new bull market or are we merely experiencing a counter-trend rally in a bear market?

A Reuters article (28th April, 200 ran the headline... “Feasting vultures say market may have bottomed ... The allure of rotting mortgage bonds has grown so strong that Wall Street's vultures have begun picking over the carcasses... these intrepid investors have begun betting billions on a hunch that mortgage security prices have fallen enough.â€