Turn of the Millenium

For the last 5 weeks, I have been connecting with something much larger than what our world news agencies have been reporting. Life still goes on and the world still turns. What began in mid-2007 as the beginning of a depression, now looks like it will be a prolonged recession. The economy still looks very bleak although signs of life are springing up in many nooks and crannies. It will most likely be another 6-8 months of labor pains and real estate declines but the stock market has begun what appears to be a turn towards more positivity. It has been noted by many great investors that our markets are Bi-Polar and now we seem to be approaching a more manic stage. The depressive state is subsiding and America is asserting itself as the world leader for the next century. This quarter might mark a return to growth that had fallen off a cliff. We will most likely look back at what Mr. Bernake and Geithner accomplished with much comfort that they staved off a systematic failure. It has been a long time coming with regards to changes in accounting and short selling rules. These changes are necessary for us to move from our current state to a more elastic economy. Using the past to dictate the future is a bad presumption. Learning to live in the present and to stop using models built on past perfomance will no doubt help us out of the mess created by the old guard. With Hedge Funds, Private Equity Funds and Investment Banks all under new regulations, risk taking should take on new dimensions. The next decade will be without a doubt be better than the one we just lived through. Staying positve is the first step.