I am saying equities are a rigged game, and rising equities
and real estate is our monetary policy. That could break, but
don't count on it. They will not rise in real terms,
rising markets are an illusion created by currency devaluation.
I am also saying we will go through a period of austerity,
monetization, inflation, high unemployment and real gdp slump
for quite some time. Up and down will depend on
the pace of Fed monetization. Namely, once it is stopped,
equities will drop. While it continues, the dollar will drop.
Net-net everything goes into a trash bin until it does not,
but we are far from reaching the bottom of this overall mess.
The credit bubble was huge, with derivatives icing on top, and
derivatives are still inflating. Things could and likely will
get much worse over time. US economy desperately needs
restructuring. The correct way, as many indicate, is to free
the markets to take care of things, but that is certain to
cause an implosion of epic proportions. So, the Fed attempts
to lower everybody's standard of living via devaluation to
avoid the rapid implosion. |
