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4/29/2010 9:23:43 AMMarket Cycle Psychology
The following post is a brief excerpt from the book "Aftershock." I believe it describes perfectly the attitude of many that "things" will just naturally get better because they have in the past (although this view is not supported by facts).
Market Cycle Psychology
"We are currently in the "Market Cycles" stage of psychology regarding the evolving economic collaspse. In the face of the evidence, people can no longer say everything is fine, so the next best way to ignore reality is to say we are experienceing a "down" market cycle. We know beyond any doubt that this is no more than cheerleading because these same experts who are now insisting we will return to an up cycle soon, never once said a word about a coming down cycle back when stocks and real estate were soaring high. Yet now we are supposed to believe that an automatic and reliable up cycle is inevitably on its way. It's all just part of the broader attempt to cheerlead the economy and keep investors relaxed. Just be patient, they say. Everything will get better soon. The economy will be just fine.
Please don't fall for this! Multiple, linked, collapsing bubbles cannot and will not magically re-inflate.
David and Robert Wiedemer, Cindy Spitzer