I don't know about the "spigot running full blast"; it seems contradictory to the wealth-effect worry, and I only hear this from the bears, who basically have to claim AG has decided to forgo professional integrity and swindle the country. I'd like to see credible references.
No doubt many are mortgaging homes for risky investments, and will be hurt if they guess wrong on their ventures, but they are deciding to be venture capitalists, and that's a game where lessons are learned the hard way. Margin debt is still $ 1/4 T, compared with $16 T total, only 1.5%.
The economy is not a zero-sum game financed by government. Efficiencies gained by this renaissance of invention are creating a virtuous cycle during this acceleration period that never happened in the 70's and 80's expansions. Inflation showed up right away, and not just in luxury items.
There's a $2T or $3T shift happening in the economy right now, and those that stay on the bus will gain, those that don't will get run over.
I still wouldn't invest in RMBS, however, but that's just me, apparently. |
