'Look around....bankruptcies, foreclosures, folks losing their jobs, losing war, crashing currency, debt coming out the wazzooo (that should be Etrade's new TV commercial), banks and mortgage companies blowing, massive derivative speculation, oil at $90 (that's bullish, it's down from $99, LOL), empty houses sitting all around the nation, i could go on and on'
With all due respect you've spent too much time reading Mish's soapbox. Those in the housing industry feel like they are in a depression but for many others it is the best of times. If unemployment stays low along with interest rates and broad money supply keeps growing the way it has this shall pass in a couple of years.. Ultimate questions Vi, myself and a few others address is the low long term rates and how much longer foreigners will accept such low returns in order to fund our excess debt creation and how long before back end monetezation of the curve and excess money creation lets inflation really out of the bag for good setting off 70's style stagflation.. Doom and gloom comes out of this near term with a major back up in long term rates. Much easier to muddle through this with real interest rates negative and deficit spending in overdrive with no ramifications other than a controlled dumping of the dollar IMHO. |
