A LOT OF NONSENSE IS AFOOT ABOUT THE EFFECTS OF HIGHER RATES ON WALL STREET...
THE STANDARD LINE IS THAT HIGHER RATES STOP "GROWTH"...
BUT WHAT REALLY STOPS IS SPECULATION...IN PAPER ASSETS...
CONSIDER:
IF OVER PRINTING OF MONEY, OVER CAPACITY AND OVER PRODUCTION HAVE DECREASED PROFIT MARGINS TO 1 OR 2 PERCENT...AS NOW.
INVESTORS WOULD FLOCK TO BANKS AND BONDS IF THEY ONLY PAIDED A DECENT RETURN...
THE FED AND WALL STREET KNOW THAT A 5% CD WOULD FUCK THIS STOCK MARKET GOOD...
HENCE THE ODD PHENOM...OF BOND YIELDS THAT ARE ACTUALLY LOWER THAN INFLATION...AND THE EVER WEAKER DOLLAR IS THE KICKER...!!
THE FED IS USING HYPER LIQUIDITY TO "CURE" THE EFFECTS OF HYPER-LIQUIDITY... LIKE HAVING A SHOT OF VODKA IN THE MORNING TO "CURE" A HANG OVER...!
WE ARE LIVING IN A VAST ECONOMIC ANOMALY NOW...
THE PROBLEM IS THAT IT IS SO VAST AND SO PERVASIVE THAT NO ONE KNOWS HOW TO STOP IT...
YES IT WILL CRASH SOMEDAY...BUT EVERYONE WANTS TO AVOID THAT AS LONG AS POSSIBLE...
