The hyper-liquidity bubble is coming home to roost...
It's not the 1999 dot-com hype bubble... THIS BUBBLE HAS NO "STORY"...IT'S JUST PURE EXCESSIVE PRINTING OF CASH FOR WALL STREET...
It was accomplished on the notion that the pauper labor of China would whip wage inflation in the US...and allow the corporate sector to concentrate cash for "productive" efforts...
But as with all hyper-liquidity episodes it ended in gross asset speculation...first in internet stocks, then in large caps, then in housing, then in commodities...
And that specualtion in commodities was the beginning of the end...
Because commodites, like oil, DO bleed into the real economy as price inflation (the bad kind of inflation)...as well as asset inflation (the kind favored by the FED and Wall Street).
NOW THE ENTIRE HOUSE OF CARDS IS STARTING TO UNWIND....AGAIN! THE LAST TIME THE BUBBLE DEFLATED DURING THE DOTCOM DAZE...THE FED WAS WILLING AND ABLE TO LOWER RATES TO ABSURDLY LOW LEVELS....1% EVEN!
JUST TO SAVE THE ASSET INFLATION FROM ITSELF...
(WAGES BEING WELL CONTAINED BY THE CHINESE LABOR MARKET)
BUT IN ECONOMICS THERE IS NO FREE LUNCH... NOW OUR "DIFFERENT" KIND OF BUBBLE IS DEFLATING...
THE DEMOCRATS ARE DEMANDING SOCIAL FAIRNESS....AND THE DOLLAR PRINTING FOR SPECULATION AT THE FED IS FINALLY OVER...
