So, is this what happens when the ERA OF LOW RATES is over?
Well, lets hope not!
The extent to which the entire BULL MARKET was based on GREENSPAN'S
EVER LOWER RATES will be tested MIGHTILY in the coming weeks.
We know that this is JUST THE BEGINNING of the interest rate hike
cycle. How do we know? WELL, OIL PRICES MAINLY!
NOT JOBS!
THE JOBS ARGUMENT IS REALLY ONLY FOR PUBLIC CONSUMPTION; IT HAS
NOTHING TO DO WITH REAL MONETARY POLICY GREENSPAN STYLE.
The sad fact is that the US economy is MASSIVELY INFLATIONARY AT
NEARLY EVERY LEVEL!
LOOK AT HEALTH CARE! AND HOME PRICES! AND ENERGY! AND FOOD! AND
LOCAL TAX BILLS! (Got your's yet? Ouch!).
AND LAST BUT NOT LEAST, STOCK PRICES! They're part of the economy
too, you know.
But stock prices are the one thing that Mr G "likes" to inflate!
Even though it's intellectually dishonest to consider one asset class
as different from the others; AS WE ARE NOW FINDING OUT!
GREENSPAN'S LOVE OF THE "PUNCH BOWL," AND ASSET INFLATION HAS FINALLY
QUEERED THE MARKETS.
But what's really amazing to me is that it took so long to happen!
