THERE ARE VERY FEW THINGS THAT CAN END "GREAT BULL MARKETS"... BUT A CREDIT CRUNCH IS STILL THE NUMBER ONE BULL MARKET KILLER...
BULL MARKETS ALWAYS END IN THE BOND MARKET...
WHAT REALLY HAPPENS IS THE EXCESS LIQUIDITY IN THE SYSTEM BECOMES TOXIC AND CAUSES EITHER OVER-EXPANSION...OR OVER-PRODUCTION...
REMEMBER THE PHOTOS OF FARMERS DUMPING MILK DURING THE DEPRESSION...?
THE AMAZINGLY THING IS THAT EVERYTHING STARTS WORKING IN REVERSE... MORE IS LESS...LESS IS MORE...
EVENTUALLY THINGS COLLAPSE...AND THEY ARE VERY HARD TO RESTART...
A STRONG PROGRESSIVE REDISTRIBUITION OF INCOME COULD BE THE WAY TO GO THIS TIME... IN THE 40'S THE WAR WAS USED TO GET THE REDISTRIBUTION GOING... CLEARLY THAT IS NOT FEASIBLE NOW...
I WOULD SUGGEST THAT TAXES BE RAISED ON THE VERY WEALTHY...TARIFFS BE PUT ON FOREIGN GOODS...
TO PAY FOR NATIONAL HEALTH CARE...AND THE PROTECTION OF AMERICA'S "INFANT INDUSTRIES."
YES...INFANT INDUSTRIES....! HAVE YOU SEEN THE TRADE DEFICITS...AND THE DECLINE IN MANUFACTURING...? THESE ARE UNSUSTAINABLE...
THE US HAS TO REBUILD FROM SCRATCH....AND REENTER THE WORLD OF PRODUCING THINGS...
WE SIMPLY CAN NOT SURVIVE ON ASSET BUBBLES ALONE...
