THE ENTIRE IDEA BEHIND THE BAILOUTS OF THE INVESTMENT BANKS WAS TO BRING BACK THE STOCK BUBBLE...AT LEAST TEMPORARILY...
AND GIVE THE SERIOUS GROWNUPS IN WASHINGTON A CHANCE TO SORT OUT THE DEBRIS OF THE STRUCTURALLY DAMAGED US ECONOMY...
SO THE BUBBLE IS BACK...FOR THE WALL STREET KIDDIES...
BUT THE STRUCTURAL SOLUTIONS ARE SLOW IN COMING...
ITS MUCH EASIER TO RE-START A NEW BUBBLE...
THAN IT IS TO MAKE THE REAL ECONOMY STABLE AND SUSTAINABLE...
SO FAR THERE IS NO EVIDENCE THAT SERIOUS REFORMS OF THE BUBBLE ECONOMY ARE BEING CONSIDERED...
HENCE, JUST ALLOWING A NEW BUBBLE IS THE DEFAULT POSITION...
PROGRESSIVES STILL FEAR THE POWER OF THE CRACKPOT RIGHT SPIN MACHINE.
BUT THE DOLLAR IS THE REAL CANARY IN THE MINESHAFT... AND RIGHT NOW WE HAVE A VERY VERY SICK CANARY...
AS BUFFETT NOTED THIS MORNING... THE DOLLAR IS TOAST...
HOLD GOLD LONG TERM...OR DAY TRADE STOCKS FOR THE MOMO PLAY...
BUT DON'T THINK THAT MOMO MONEY MEANS THE ECONOMY IS STABLE...
IT ISN'T.
UNEMPLOYMENT HEADING FOR 13%...THE DOLLAR GOING TO 160 ON THE EURO...AND THE DEFICITS SOARING.
AT SOME POINT THE FOREIGNERS WILL PULL THE PLUG...AND IT COULD HAPPEN VERY QUICKLY...
