This week, Ms. Gretchen Morgenson comments in her "Fair Game" column in the New York Times that "bits of conventional wisdom … are being questioned." One of these bits is the notion that China's economy will always be strong. Another is the valuation of stock at companies that report losses year after year: Perhaps the stock of companies is overvalued when the companies report nothing but losses in every report. Gretchen Morgenson, "Fair Game / Doubts Start to Chip Away at Mind-Set of Markets" p. 1, col. 1 (New York Times Nat'l ed., "SundayBusiness" Section, August 16, 2015). http://nyti.ms/1LcnVTX
"Bits of conventional wisdom" are if anything overplayed by many investors. The use of leverage to buy stocks is at a high, perhaps at a peak. Money borrowed to buy stocks is "nervous money." http://nyti.ms/1LcnVTX
Just two weeks ago, Ms. Morgenson commented on the Home Affordable Modification Program or "HAMP." The Obama Administration's answer to the problem of underwater homeowners and their desperate need for loan modifications is in the title of her column: "Slack Lifeline for Drowning Homeowners." http://nyti.ms/1WwMkd7
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