The Market Is Not Always Wrong

The fed and treasury really took actions that we had never seen before in terms of speed and magnitude, some new tactics. So the markets went up ad im that i don't think any individuals thought they would go up. Margin requirements are increased. You have to put more money to have a stock market position of the same size. That makes prices decline, because many people can't post additional margin and they have to reduce their holdings. The other thing is this, when the market is rising, tere's this kind of a feedback mechanism. And if somebody would have seen those first few days of rising prices, and, as you know, this is telling me, there's something going