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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (5485)	1/19/2004 12:01:07 PM
From: philv	Read Replies (1) \| Respond to of 110194

From the comments I have recently read, the Fed seems to be trying to equate the rise in equity markets and property as a kind of substitute to rise in wages. They are suggesting this is a good thing, not a bubble, but evidence of the growing wealth of America. They talk about the wealth affect in a self congratulatory way, and take back-handed credit for these bubbles. That is the spin as I see it anyway, eagerly swallowed by the in crowd. Who needs wages when you are getting rich beyond your dreams on your real estate and market investments? Get these assets high enough, and everybody is a millionaire. In other words, all is well. If people refuse to borrow, and if the helicopter scenario is out, maybe the government can borrow for the unwashed (like Japan) and re-distribute the funds via make work projects or just plain another tax rebate?