RM - Lets not tempt fate here. No good taking slight comfort in others misery. Theirs could soon be ours.
I take absolutely no comfort in observing that BH is down 50% from its highs. I do take some comfort in seeing AMZN and other completely speculative stocks being well off their highs, but that is a different issue.
The big problem I have with Greenscam is that he is stepping well outside of his responsibility when he tries to manipulate the market towards his own views of where it should be. The FOMC is supposed to promote economic growth, full employment, stable prices, and sustainable international trade. HELLO... we have that already! Don't fix what ain't broke! Nowhere does it say that they have to give us their opinion about whether the market is in a bubble, or is irrationally exhuberant, or any other market opinion. The market has done a pretty good job of finding its own level, and as long as the government doesn't interfere, it bounces back pretty well from deep corrections, as in 1987.
Another thing that bothers me is that AG is going after the wrong sector. The reason tech stocks have been rising so much, IMHO, is that we are reaping a peace benefit from the end of the cold war. All of the economically wasteful productivity back then is now being commercialized and redirected to peaceful uses. GPS; CDMA; the internet; supercomputers; optical computing.... the list goes on and on, and all of these are technologies that came out of the defense industries. During the cold war, people still drank a lot of coke, but they could not use these technologies. So AG wants to rob us of our peace dividend by raising interest rates to crash what he perceives as a bubble in the tech sector. What he will do instead is crush the very value stocks that he so admires, and create a two-tiered market, with a lot of volatility. The man is dangerous. |
