HAS THE GREAT AGE OF BUBBLES ENDED...?
I SUSPECT IT HAS...BUT IT LASTED A LONG LONG TIME...
REALLY SINCE 1982... THE RUN UP IN SPECULATIVE PAPER HAS BEEN ENCOURAGED BY THE FED AT EVERY TURN.
NOW THE EMPHASIS WILL BE ON RETURN ON INVESTMENT...IN CASH!...NOT IN PAPER ASSET INFLATION CAUSED BY EASY MONEY AND CREDIT...
YIELD IS KING NOW...IF IT DOESN'T PRODUCE AN "INCOME" WHY OWN IT...!!
REAL ESTATE WILL REVERT TO BEING VALUED FOR THE RENT PRODUCED... STOCKS BY THE DIVIDENDS PAID... AND BONDS BY THE COUPONS CLIPPED AND THE RISK ASSUMED...AS WELL AS THE INFLATION EXPECTED...
THERE MAY BE SOME INFLATION LOOMING IN THE REAL ECONOMY BECAUSE OF THE MASSIVE DEVALUATION OF THE DOLLAR THAT WAS NEEDED TO MAINTAIN THE BUBBLES OVER TIME.
AND THE US MAY HAVE TO START PROVIDING FOR IT'S CITIZENS...AND ALLOW THE "WAR BUDGET" TO REVERT TO MORE SUSTAINABLE AND REALISTIC LEVELS... BUT THE WORLD WILL BE A SAFER PLACE BECAUSE OF IT...
P/Es SHOULD REVERT BACK TO 10 TO 15 TIMES EARNINGS... A 20 P/E WAS CONSIDERED EXTREME EVEN DURING THE HIGH POINT OF THE 1929 BUBBLE...WE OFTEN FORGET THAT.
AND THE US WILL HAVE TO ACCEPT IT'S POSITION AS A LESSER ECONOMIC AND MILITARY POWER.
GLOBALISM WILL SUFFER...AND LOCAL ECONOMIES CAN SLOWLY REBUILT AFTER DECADES OF LOOTING BY THE WALL STREET ELITES...
SOMETHING IS ENDING THIS FALL...
EXACTLY WHAT IS BEGINNING IS AS YET UNCLEAR...
