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Friday, June 26, 2009

Dumb money is easy to spot

The dumb money is fairly easy to spot. It’s the money that always shows up late to the party, wearing yesterday’s fashions. It watches TV and thinks the reality shows show reality…it thinks Ben Bernanke is a great economist…that the SEC protects investors from fraud and misrepresentation…and that Tim Geithner makes sure the economy keeps running smoothly.

It’s the dumb money that thinks you can correct a generation-long period of credit growth in 24 months…with less than 10% unemployment…

Stocks have now been in a rally for three months. The longer this goes on, of course, the dumber money gets. People come to think the bounce is a permanent bull market. . . .

But while the dumb money has its eyes on the stock market, the smart money is watching the economy.
--from "Two Ways to Deleverage an Economy" by Bill Bonner (6/9/2009)


Anonymous Anonymous said...

yeah, there will always be dumb people who will watch TV or read newspapers and think this is EXACTLY whats going on

as much as it may sound cruel, its good that there are idiots that self-exploit themeslves

1/9/11 02:44  

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