Irrational Exuberance..

Markets in past few weeks are in a confused state...they over recovered since lows made in march..as an economist was mentioning...people suffer from "Traumatic stress syndrome" and its effects are people forget how bad things were.seems perfect,evryone really forgot that this recession was compared to The Great Depression,the firms which stood tall for over a century,the firms which could make profits at time of world wars,even they failed..and it was supposed to bring the financial system to a halt.And now,just 8-10 months down the line,those memories are fading away.Its commonly said,stock markets are leading indicators,i.e they recover 6 months in advance than economy recovering but even if everything goes on well,economy doesnt seem to be growing atleast for an year to come.
In past few days,i realised these economists and analysts are as confused as a common man is....Most of them speak bullshit just coz they are asked to..its just that they have better way or technical jargon for explaining whatever is happening in market.
What i believe is,let this be an opportunity to cleanse the system,or what Alan greenspan calls "CREATIVE DESTRUCTION".What stimulus packages can do is prevent firms to file bankruptcy but hardly helps in cleansing the system.Let the credit card bubble burst now,rather than an year or two later...
Now chinese markets giving first clue of weakness and fake bull rally.The bull rally was supported by recovery in china and a report reveals that the kind of money which china pumped into its banking system in past 6-8 months,its almost twice of the money pumped by all indian banks since their existence.In other words,the money pumped by china into its system was enough to create two indian banking system..such reckless money comes to stock markets and gives a false image of everything is fine.Though the worst mite be already behind us,even if credit card bubble bursts soon,but a big correction is due,technically and fundamentally both..
M hell bearish about the markets..but as always,commenting is free of cost,investing is not...:-)