Bottom talk.
I remember some time ago seeing James Grant interviewed on CNBC. He was asked what event or catalyst could turn the surging equities markets around. He responded that he didn't think that the difference would be made by any one public event, but rather an combination of things such as the inevitable marginal factory being built that really shouldn't have, that marginal IPO coming to market that finally increased the supply of paper too much, etc.
So, while the bottom will someday show up clearly on the historical charts, my view is that the factors which would go into eventually turning things around will be imperceptible until their effects are known. Lower share prices, by definition, certainly help though.
After having CNBC on in the background this afternoon, it appears that inflation may be such a "non-issue" that even they are starting to pay attention. Not to worry though, it was clearly established that the non-issue was a non-issue and so on they went to the next person to discuss the non-issue. What really amazes me is how some of these "experts" so conveniently divorce the concepts of inflation and monetary policy, BWDIK???
So, lets get on with it. Have the indices break the old lows so that we can have another "surprise" rate cut and once and for all make it clear that the stock speculators are managing monetary policy. Personally, I don't see how this economy can adjust when so many of the particiapant's decision making process has been so severely compromised.
I'll stop there, before launching into a tirade of disgust regarding irresponsible, politically influenced monetary policy and sounding like you-know-who.
Has anyone ever heard that the Feds main charge was to assure price stability?? Wondering if I just made that one up.
Regards |
