Hi Gabriela, Although clearly the bulk of money are in bonds,
stocks are underpinning of the real problem. US Stock Market
priced for perfection ia a pillar upon World Confidence in USA. $
and bond is based. That is why any disappointing events that would
result in drastically decreased earnings (growing trade deficit, world recession, social unrest on Korea Peninsula as unemployment tripple thanks to IMF Austerity Program ets) could hit Market. Now ironically
the confidence in USA is far higher in Asia and Europe than in this land. If that confidence somehow shaken (and that is why Greenspan was so fearful of exuberance) that could really precipitate World recession based on collapse of consumer confidence.
On that premise I take again an issue that Greenspan, Clinton
or any banker or individual is in control of these events.
The idea of new paradigm heavily promoted in past 2 years, in reality
is a sham, totally ignoring history, human, nature,economy any
history and is based on pure faith. Faith-is by definition is
an opinion that does not have to be substantiated. Worse, not only cycles do come to an end (100% proven by history, we now do have a situation where opinions that Asia would recover is based on assumptions that they would do so because IMF money would bridge
huge overcapacity and ability to pay debt long enough, while they would export themself out-of trouble, contradicting notion
that USA Market somehow would oblidged to stay high, even as earnings fall as trade deficit explodes, while still being prised for explosive growth...
Gvn's are not in control that is illusion or lye depending on who promotes it. Market or cycle not avoidable.
As scary Kutin writings are for some, the Depression must wipe-out
debt, excessive capacity in Asia and so on, and Austerity cannot do it
(but can cause social unrest, another tool in disposal of Mother
Nature cleaning the house... |
