It is definitely a bubble in the stock market. It’s the only place for an investor to make a reasonable return at this moment, and the risk is far less so long as the fed continues 85b bond purchases per month.
I’m certainly no pro at this, but it strikes me that the Fed simply can’t continue creating an enormous amount of money without inflation eventually taking off. One thing holding inflation back is that the government has such a narrow definition of it anymore that it is hard to accurately judge it. So, it’s really sleight-of-hand inflation reduction and not really holding the line on inflation.
Another thing hold inflation down is what is in actuality a very weak economy, an economy without confidence, a nation without confidence, a nation on welfare, and a nation more unemployed than employed. This results in a lack of national wealth, and without wealth no one spends.
In order sell what they do sell, producers and retailers must suppress prices, innovation, R&D, and quality. That way they keep prices down.
It isn’t exactly a depression in the classic sense, but the backward track of price, quality, and opportunity means there is a regression going on.
In short, the nation is going backward, and things are getting worse and worse month by month.
Retire early and get a lump sum if you can. Your paper is going to take a nosedive at some point in the future...I’d say after this mid-term election or after the next election.
Obama would love to let the bubbles burst if republicans win both houses of Congress, or barring that, if republicans win the 2016 presidency.
“Another thing hold inflation down is what is in actuality a very weak economy, an economy without confidence, a nation without confidence, a nation on welfare, and a nation more unemployed than employed. This results in a lack of national wealth, and without wealth no one spends.”
The middle class continues to be economically raped. And this will become very evident by next spring when mcconnellcare is in full flower. People who are spending their money on inflated medical insurance will not be spending it on other things.
In the mean time, the Fed will continue if not accelerate their slow destruction of the currency.
“Obama would love to let the bubbles burst if republicans win both houses of Congress, or barring that, if republicans win the 2016 presidency.”
To stop the music, commence the collapse, and usher in Marshall law. Kiss the Constitution good-bye and hello dictatorship.
I wonder if that’s why it seems the Republicans don’t try to win. Or win too big. Is it possible they do this to delay as long as possible the inevitable?