Markets hate a loser. When Enron went belly-up late last year, it didn’t take long for the analysts who’d been singing the praises of the energy dynamo to shift into a new chorus: “Of course it was too good to be true.” Better to forget about Enron. Move on. Buy and sell other stocks. Make more money. But a skeptical public is looking more carefully now at auditing, promotion and trading. The return to “business as usual” is not so brisk. If there’s anything the markets hate more than a loser, it’s fear. Fear that there’s another house of cards out there waiting to fall.
Guests:
Jim Stanton, Editor of “Low Risk Strategy Daily”
and Mark Zandi, economist with Economy.com