The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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From: TH	7/14/2010 6:34:52 PM
	Read Replies (2) of 306849

Ten year is looking interesting on an "UP" Dow day. Of course I'm not sure what the Ten will do if QE2 becomes more and more probable. Had a debate with a buddy today. Here is the question. Can the Fed (or insert your favorite market manipulator) keep markets up just with liquidity jamming? On the longer horizon I'm in the NO camp, for even if you pump, earnings have to support a "fair" multiple. I use the word "fair" as it can mean whatever delusional level the idiot bulls group-think is correct for a given macro environment (which usually means higher during growth and NORMALLY lower during contraction...ending in the gut wrenching puke-fest at say 6-8 we call a REAL bottom, which we've not seen yet). Only with a true risk of hyperinflation can stocks catch a permanent "high" bid with unsupported earnings. Add in the fact that liquidity pumping does not translate to increased waged and an economy built on 70% consumption is going to have a rough ride. Chime in on the great liquidity pump and JPM and the like HFT jammy job. Is it sustainable, just because little Bennie says so? GT TH

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