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Monday, June 29, 2009

No bull market until the market sorts things out (II)

The D-process is a long process. It takes time to sort things. Just imagine how long it takes to pay off debt…or it takes for GM to become a profitable business again…or how long it takes Six Flags to find a new business model. These things don’t happen overnight.

And while they are happening, people – who have no experience with the D-Process – think they see ‘green shoots’…or think another bull market is beginning…or think the feds have fixed the problems. Time after time, they come back into the investment market…time after time they lose money. And then, eventually, they make peace with the D-Process and put their affairs in order. Then, and only then, can a new cycle begin.
-- from "Curing One Financial Disaster With a Worse One" by Bill Bonner

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