The true extend of GREENSPAN'S DILEMMA
may be on full view this week with the coming Fed Meeting.
Clearly, The Fed has to "defend the dollar" if there is any hope for cheaper gas for the summer tourist season in the US.
And with news that a China devaluation is in the cards...the need to protect the dollar only increases. The housing bubble has got a mind of it's own...but many realtors I've talk to lately say there is a certain slowness in the market now as more and more people are priced out of "entry level" housing. In short, housing is only for people who already own real estate the barriers to entry are so high now.
And the war continues to suck up money like it's 1969!
And the market is still way over-valued on an historical basis....few now remember when a P/E of 20 was considered to be wildly speculative....! And who remembers real dividends and yield these days.
The stock market is just a lottery ticket now. And a downward adjustment to reality would be welcome at this point.
