re: that Cornerstone link & charts on money supply
...look at those charts on money supply AND consumer debt !
cornerstoneri.com
[ nice link longdong ]
It looks just like the parabolic blow off top to the NASDQ chart to 5100.
Look at the HISTORIC trendline on debt & money supply prior to the late 90's parabolic blow off.
This is NOT normal.
ANYTIME we see these types of "parabolic" charts - we know what happens !
Greenspan got USED by Robt Rubin whom imho; will go down in history as the man who orchestrated both the greatest transfer of wealth in history (from us to the Investment Bankers) as well as the man who orchestrated the greatest misallocation of capital in global history and who sent more money to money-heaven via the debt orgy-implosion than any other mortal ever will again...
Heed every warning you hear, or read about concerning the GSE's Fannie & Freddie...they are out of control and there is more BAD PAPER held by them than even imaginable.
The only thing Greenpimp can do & has done; is push more money - literally as much money as anyone wishes to sign their names for... in an effort to "buy on paper" .... the ILLUSION of an economic recovery....vis a vie - the strength of Consumer Spending & Retail Sales and Home Buying.
ILLUSION is the keyword & concept here folks !
You can sell all the cars you want for "0%" interest @ invoice.
You can also sell all the computers, CD & DVD players, washers & dryers and softgoods you want... if you keep pushing plastic at the most debt riddled consumer in American History... because they can not and have not said no... they just keep BORROWING and buying...
- but, don't lose the connection between - borrowing AND buying.... because they sure as hell would NOT still be buying... if they weren't borrowing !
We've mortgaged our future, our competitive edge and to a significant degree - any real nearterm economic recovery imho... all we did, was to allow Mr. & Mrs MainStreet USA to bloody their own personal balance sheet... just as we allowed Enron, Global Crossing, WCOM et al ... to do.
It's an ILLUSION... that must and will come to an end.
All of that debt can not and will not be repaid... and we saw what happend to corporate America when the final bill came due from Enron, WCOm, Global Crossing etc...
- trust me; the same will happen for the US Consumer; because that bill is coming due... and they can not keep refinancing and postponing the inevitable and corporate earnings surely do NOT support any significant wage upside in the nearterm either.
...it's THE GRANDE ILLUSION ~
- nothing more, nothing less.
...and DEBT - IS, WAS and WILL ALWAYS BE... a 4 letter word !
$lider` |
