AMERICA IS A BUBBLE ECONOMY...EXCLUSIVELY!
THERE IS NOTHING "UNDERNEATH"...ITS HOLLOW INSIDE...
SO ITS NOT NEWS THAT STOCK PRICES ARE THE MOST IMPORTANT SECTOR OF THE ECONOMY.
AMID ALL THE DISMAL NEWS...WALL STREET HAS BEEN BAILED OUT...BUT IT CONTINUES TO STRUGGLE WITH THE REAL ECONOMY NUMBERS EVERYDAY...
MY HUNCH IS THAT STOCKS LEVITATE...WITH PLENTY OF SUPPORT FROM THE FED...
THE FED HAS MORPHED INTO THE "PROTECTOR OF WALL STREET"... THE REAL ECONOMY BE DAMNED...
THIS COULD GO ON FOR A WHILE...BUT EVENTUALLY THE "REAL NUMBERS" WILL GANG UP ON ALL THE FORCES BEHIND THE STOCK BUBBLES...INCLUDING THE FED.
AT THAT POINT...A SERIOUS INFLATION COULD BE INEVITABLE...RATES WILL RISE...
AND STOCKS WILL FALL INTO A 1970'S STYLE FUNK FOR PERHAPS TEN OR TWENTY YEARS...
