Allan can print all he wants, and it is for certain, that much of this "play-dough" will end up sloshing onto the trading floors, but it isn't going to turn this "super tanker" (thank you "Big Abby"), from its appointment with the looming icebergs. The consumer is worried, he's cutting back and hunkering down, and without him, the U.S. inventory scene continues to make "Larry the Liquidator" grin in anticipation.
Agreed, but I'm a little nervous about all the refi activity. I can't believe the enormous number of refinancings going on, and that is money in the spend-happy consumer's pocket. I also can't believe that they're issuing credit to individual people at rates so low, but I guess it's all implicitly backed by the US govt anyway. The big question will be if the consumer continues to spend, or actually modifies their behavior and brings the savings rate back *above* zero.
I continue to support the notion that it could be a while until the Fed is discredited and everyone realizes that the liquidity trap is set. And while I expect it to happen, I'm not married to it. Every time IS different, and if Greenboink pulls it off, he will (yet again) have saved the ignorant from their mistakes at the expense of the rational investor. Ah, Mother Government...
BC |
