YOU HEAR A LOT OF "MARKET MANTRAS" THESE DAZE...
"LABOR IS A LAGGGING INDICATOR".... "DON'T FIGHT THE FED".... "THE CONSUMER WILL COME BACK..."
BUT THE PROBLEM IS THAT ALL OF THE MANTRAS COME FROM A DIFFERENT TIME AND A DIFFERENT ERA...
ALL THE ANALOGIES TO THE 70'S...IGNORE THE FACT THAT IN THE 70'S THE FED HAD IT'S FOOT ON THE ECONOMY'S NECK WITH THE 16% PRIME RATES...!
NOW, IT'S JUST THE OPPOSITE...EASY MONEY IS BEING USED TO "CURE" EASY MONEY...AND IT HAS BEEN FOR DECADES...THE PUNCH BOWL WAS NEVER TAKEN AWAY...NEVER!
WHAT'S WRONG WITH THAT...? SIMPLY EVERYTHING...
WHENEVER YOU HEAR AN ECONOMIST USING PRIOR MARKET AND ECONOMIC CONDITIONS TO SAY SOMETHING ABOUT THIS ECONOMY...AND THIS DEPRESSION....
REMEMBER WE HAVE NEVER HAD AN ECONOMY WHERE THE FED WAS THE CAUSE OF THE BUBBLES....!!
WHERE THE FED WAS IN CAHOOTS WITH THE WALL STREET SPECULATORS...!
BUT WHY THIS TIME... DID THE FED NOT "TAKE THE PUNCH BOWL AWAY...?"
GREED, CORRUPTION, A PRO WALL STREET, PRO ZIONIST BANKING BIAS IN HIGH LEVELS OF GOVERNMENT AND ECONOMIC POLICY... YES, ALL OF THAT...
BUT ALSO THE TOXIC EFFECT OF THE 401K "SUBSIDY" TO WALL STREET ....
THE 401K WAS THE PENSION SCHEME OF CHOICE IN WASHINGTON...SINCE 1982...
AT THE VERY TIME THAT THE ASSET BUBBLES STARTED!
EVERYONE WAS SUPPOSED TO GET RICH SPECULATING IN STOCKS...AND THUS PROVIDE FOR THEIR OWN PENSIONS...AND RETIREMENTS.
THE 401K WAS ORIGINALLY PUSHED IN THE RAY-GUN YEARS AS A SUPPLEMENT TO A DEFINED BENEFIT PENSION...BUT SLOWLY IT MORPHED INTO THE ONLY PENSION AVAILABLE TO WORKERS IN MOST COMPANIES...!
THE 401K MAKE WALL STREET SPECULATION INTO "AMERICA'S GAME"...AND WE PRINTED AND PRINTED AND PRINTED MONEY TO SUPPORT IT...
AS LONG AS THE MONEY STAYED TRAPPED INSIDE THE MARKET SYSTEM...INFLATION ...WAS CONTAINED...AT LEAST FOR REAL ECONOMY GOODS...
OF COURSE WE HAD A HYPER-INFLATION IN ASSET PRICES...!!
AND HAS MS STEIN MIGHT HAVE SAID: HYPER-INFLATION IS HYPER-INFLATION IS HYPER-INFLATION...
OR WAS THAT MS TOLKAS...?
