That's a good description of the Bull case: massive wealth transfers from labor (consumers) to corporations via a combination of inflation, debt serfdom, and wage starvation (called productivity). How much more can this be milked is the question, plus equities aren't cheap as they've been bid up to milk the system even more for plutocrats.
Reading your comments, I believe the one aspect you will miss badly on is that Brazil Americans ability to pay back, let alone borrow even more, is hitting the wall. Just as you think the consumer is running strong, I think the bad debts and insolvencies are spreading like cancer. Of course the later is somewhat hidden (or ignored?), until the patient wakes up dying in a cancer ward, while the "good news" is amplified and exaggerated to the bitter end. Plus the strong consumer is easy to spin because the Bully class is so flush, and has been able to carry it as long as financial assets are inflated. But Bully will blow up along side his bloated financial holdings. In part this will happen because debt serfs (including the ones who will likely deliver you your "great" XMAS) will default on Pig Man's and FCB's securities. For example somebody holds the mortgages on this underwater collateral, or has that been "socialized" too? FCB's will wake in a cold sweat, and realized they've been duped on 4.9% yields on caca. Then they can hold foreclosured houses as their reserve holdings.
Latest numbers released by the Florida Association of Realtors: the median home price was $277,900, down 18 percent from the $340,700 median in 2005. |
