"the rich to get richer and the poor to get poorer."
Yes, that is the bottom line, no doubt. In terms of Greenspan, I have said he deserves a raise.....he plays the part of the omniscient calm and confident central banker to perfection, and the reverence he is afforded in public hearings is evident to all.
I think the world economic system is sick and increasingly needing more and more credit. This is especially true in the U.S. But fortunately, the U.S. has not paid the price for its huge credit appetite, as the Asians are now stepping forward to eagerly buy up everything the Americans are printing. When you have good credit, you get favourable interest rates. And the U.S. dollar has been showing surprising strength of late. So, the party goes on and on.
Not surprisingly, gold looks weak and could fall further.
I have heard reports that the average house in New York city is a million dollars, thanks to Greenspan's easy money policy.
I just see lots of problems Searle, bubbles in real estate on both coasts, government overspending and growing debt. But if you listen to the gurus on wall street, it is a Cinderella economy with growing profits, job creation, no inflation and no longer any fears of deflation. If you believe all of that, such an economy should be supportive of the CRB.
Greenspan gave the short term bond market carry trade due warning to begin to unwind their positions because interest rates are bound to be going up. Very kind of him, thank you. I personally don't see interest rates being hiked too far.
As long as the problems that I see are ignored, they don't matter, do they? It matters not what I or any one else around here says or does.....what matters is what the Wall street gurus lead by Greenspan and FED susidiaries in Japan & Europe pronounce. So, for the time being anyway, it is business as usual and clear sailing.
It is clear to me that a big exogenous event would have to occur to dramatically change the economic situation. Although such an event could happen at any time, I can't see anything on the horizon at the moment. |
