Courtesy of Pring Turner Capital Group

““If the current bear does follow the average path in a broad sense, our historical study suggests 2011 could be a challenging year.  We are in no way predicting that a new down leg to the secular bear is about to get underway because that would require evidence of a new emerging cyclical bear and that is not yet on the table. What we are saying, is that confidence is still excessively high by traditional standards, valuations are still too expensive and therefore, investors need to be on alert for a resumption of the secular bear trend.”

2011 it´s going to be an interesting year to follow…

The world that took as to where we are today was the glamorous new world of finance through  the process of securitization.

As Paul Krugman said : ” Loans no longer stayed with the lender. Instead, they were sold on to others, who sliced, diced and puréed individual debts to synthesize new assets. Subprime mortgages, credit card debts, car loans — all went into the financial system’s juicer. Out the other end, supposedly, came sweet-tasting AAA investments. And financial wizards were lavishly rewarded for overseeing the process.

But the wizards were frauds, whether they knew it or not, and their magic turned out to be no more than a collection of cheap stage tricks. Above all, the key promise of securitization — that it would make the financial system more robust by spreading risk more widely — turned out to be a lie. Banks used securitization to increase their risk, not reduce it, and in the process they made the economy more, not less, vulnerable to financial disruption”.

One way to look at the international situation right now is that we’re suffering from a global paradox of thrift: around the world, desired saving exceeds the amount businesses are willing to invest. And the result is a global slump that leaves everyone worse off.

To see how we are reacting to the problem, let´s see Stock´s Market latest reaction :

Impressive at least !!! The worst sectors and the ones with more problems are leading the rally…

Have we learned anything yet ???