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Old 11-07-2010, 10:04 AM
idiotstockinvestor idiotstockinvestor is offline
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Default Stocks Face Dark Side of Gridlock in Capital

http://online.wsj.com/article/SB1000...364173718.html

My interpretation is that these guys are giving a clue that they think the market is artificially high and is bound to crash:

Quote:
The last time the Dow fell during a president's third year was in 1939. It also fell in 1931, and in three earlier years. The reason for concern now is that we are going through the most troubled economic period since the 1930s.
"We haven't been in this kind of position for very many years, where we have a very weak economy and the ammunition the Fed has to do something is running out," says Edgar Peters, an investment strategist who helps oversee $15 billion at First Quadrant in Pasadena, Calif. The Fed's QE2 plans are experimental, Mr. Peters notes, and few think it is as effective as actually reducing the Fed's target interest rates, which already are near zero.
With little hope for fiscal stimulus, "you have to believe that the economy is going to right itself by itself, and that is a big if," Mr. Peters says. "That would be the argument that gridlock is not good."
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