The Sub-Prime Mess (PowerPoint download)

I don’t know who created this, but it’s pretty funny (it was emailed to me by a fund manager friend in London).

I will say that by the time stuff like this is making the rounds the story is getting pretty well worn. In this case, that might suggest…

…a rally attempt is near. However, as previously discussed, I don’t think the bear market is over. Why? Because we have not yet had the final capitulation, or even the “hope” rally that precedes it. At some point in the not too distant future, we should have the “hope” bear-market rally, which will get sparked when, for whatever reason, the current bout of fear is relieved, temporarily at least. For example if/when the uncertainty is removed from the monoline question, a story which has been beaten to death and beyond.

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