Today's trading on the stock market means little (as does yesterday's for
that matter). The important thing is the fundamental events that have been
unfolding in Asia over the past four - five months, as Michel Chossodovsky
pointed out in his analysis sent out BEFORE the thurs-fri-mon crash. As the
analysts point out, we're probably in for a period of stock market
"volatility", which could even see a return to previous high levels. What is
extremely unlikely, however, is a return to the past couple of years'
pattern of record high after record high.
In other words, the thing to watch is NOT how far the market falls (or
doesn't fall) but whether the economy can continue to grow without the
impetus of the market bubble. History says no. A lot of people have already
pointed out over the past year or so that we are now in an era of
"deflation". Deflation coupled with rising stock prices can create a strong
illusion of prosperity. The illusion is gone. A "recovery" won't restore the
illusion (only a new illusion could restore the illusion).
>
>On Tue, 28 Oct 1997, Thomas Lunde wrote:
>
>> When the Dow opened this morning, Tues Oct 28, it looked like a losing day,
>> by noon the market was climbing and finished over 300 pts.
>>
>> I was speculating, was it traders from other markets in the world who
>> picked the US and Canadian markets as the most probable to remain secure or
>> was it American Funds snapping up bargains?
>
> Or was it firms buying back their own stocks. Would be curious to
>know where the intitial burst of buying came from, the burst that set off
>the recovery.
>
>arthur cordell
>
>
>
>
>
Regards,
Tom Walker
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
knoW Ware Communications
Vancouver, B.C., CANADA
[EMAIL PROTECTED]
(604) 688-8296
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The TimeWork Web: http://www.vcn.bc.ca/timework/
