Ten Bear Market Phases (bond, calls, mortgage, lawsuits)

[gorgeet]

Ten Bear Market Phases

1. A huge buy the dip mentality sets in during the initial decline. Most party goers cannot fathom that party has ended.
2. Moderate concern sets in when buy the dip stops working.
3. Initial panic.
4. Numerous bottom calls are made, all wrong.
5. Search for the guilty.
6. Punishment of the innocent.
7. More panic.
8. Lawsuits fly.
9. Regulatory power is given to those most responsible for spiking the punch bowl.
10. Congress gets in the act and makes things worse

Mish's Global Economic Trend Analysis: Bear Market Phases

[HappyTexan]

I saw that.

We seem to be looping from 9-10-9-10-9-10 depending on what blows up on any given Friday.

[goodbyehollywood]

We seemed to have skipped #8. The lawsuits aren't flying. I find it almost impossible to believe that homeowners and investors aren't lined up to sue. I can't believe it's not a real suefest with lawyers jumping in from coast to coast to get a piece of this. There are so many actionable offenses and almost everybody can claim damage of some sort from somebody.

[HappyTexan]

No one forced homeowners to sign the mortgage papers and they would have to prove fraud. The ones in trouble are probably the last ones who would be able to hire an attorney.

We have seen some in the past couple of weeks though:
-our government wants to sue OPEC for high oil prices
-LA is suing the bond insurers regarding the AAA rating and investment banks

[sonarrat]

Originally Posted by goodbyehollywood

We seemed to have skipped #8. The lawsuits aren't flying. I find it almost impossible to believe that homeowners and investors aren't lined up to sue. I can't believe it's not a real suefest with lawyers jumping in from coast to coast to get a piece of this. There are so many actionable offenses and almost everybody can claim damage of some sort from somebody.

IndyMac has had about a half-dozen lawsuits lodged against it, mostly related to continuing to invest 401(k) accounts in its own stock when it was absolutely not in their employees' best interest to do so. But it's still not as wild as it could be.