With a few members of

    California vs Texas

    Posted by shamutooth on 12th of Jul 2009 at 11:08 am

    With a few members of my family in the banking business,one thing continues to jump out at us almost universally. That one thing is that NOBODY has sold any of their stocks/mutual funds unless they've been forced to sell to cover living expenses. This is not how bear markets come to an end. We are not seeing any public capitulation,just the recurring theme of holding long term and the markets will come back. It's just amazing to me that most are down 50% and have not sold,and are not even thinking of selling! Another thing they're seeing is that everyone who can is deleveraging/consolidating  like crazy,and are vowing not to get in the credit trap again. Everything is just so consistant with  past historical examples of post credit bubble contractions that it's just frightening to me what the future will bring.

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