Posted on 02/05/2013 3:51:19 PM PST by Lorianne
Yes, the Dow and S&P500 hit new highs. But the rallys hiding huge risks: GDP turns negative as U.S. economic recovery stalls, screams one headline. Another hears a Ticking Time Bomb.
Worlds central bankers at Davos warn cheap moneys blowing a new asset bubble. Dr. Doom, Marc Faber, loves the high odds of a big-time market crash. Another, Nouriel Roubini, says prepare for a perfect storm, while Bond King Bill Gross sees a credit supernova dead ahead.
Rally? Bubble? Crash? Global? Is the economy peaking? Are we on a long, slow-growth downhill slide to a 1% GDP? Is our banking system infested with a soul-sickness virus? Is Adam Smiths capitalist ideal turning against our markets and economy, accelerating the odds of more brutal competitive wars over an ever-shrinking, low-margin profits pool?
(Excerpt) Read more at marketwatch.com ...
In other words, if they scare us enough we’ll sell our stocks cheap to the people they’re shilling for.
Should have gone to your link first: I didn’t know it was an article by Farrell. He’s pretty good.
Yes.
Do not make the mistake that the economy at large, especially small business, is the same as the mega-corporations and Wall Street financiers.
Our government is corrupt, big business and big finance and big government have made a mutual deal with the devil. ZIRP and endless financing of massive federal government deficits have made any hope of a return to normal economic circumstances impossible without a major calamity.
Just find out what happens to the price of trillions in government securities held by the Fed if interest rates just returned to a “normal” level. It just cannot happen without bankruptcy.
Bennie etal have made a mess of it. We are so screwed.
sschu
Someone must be selling gold.
Add to this...
* Bazillions on Medicare, Foodstamps, Disability.
* Porkulus extended, no real budget in 4 years, they can't the numbers would scare even the LI-Voters.
* Real businesses in my town haven't recovered from 08' so many business closed and nothing has taken their place, they remain empty.
* You get the sense they are quashing real growth because if they get turnovers of the dollar and they chase themselves inflation comes back and it falls apart.
* You are right Bernake-Gietner-BHO have no arrows left in their quiver.
* All the Euro's have to do is downgrade us once more and I think the party is over. The problem is Obama doesn't care, his Hurbis knows no bounds. After all he has got a ton of EO's in his pocket if they do and it falls apart.
I do not see a way out of this....
The only way out I can see involves spit, baling wire, bubblegum and bandaids.
The only way out I can see involves spit, baling wire, bubblegum and bandaids.
I'm thinking at some point, some tar and feathers may come in handy as well.
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