David Stockman continues his run as the best explicator of what is going on financially in the world.
You investment portfolio loses 50% or more and does not come back. Then what? The rest of the economy is doing poorly because the stock market is inflated. When it busts, that mirage will be gone but the real problems remain.
Better start a business.
Feel free to forward this by email to three of your friends.
But here’s the point. If you are not wearing Keynesian blinders, it is self-evident that the $3.5 trillion expansion of the Fed’s balance sheet since September 2008 has all gone into the reflation of financial assets—a staggering gift to speculators and the small portion of households (10%) which own more than 80% of all financial assets. The reason for this diversion of the Fed’s vaunted “extraordinary accommodation” into windfall gifts to the 1% is that the historic “credit expansion channel” of monetary policy transmission is broken and done.Pew reported the divide is getting wider between left and right, with the right getting the advantage. Nice going, libs...! Keynes in the German edition of his Magnus Opus noted Keynesianism would work best under Hitler.
You investment portfolio loses 50% or more and does not come back. Then what? The rest of the economy is doing poorly because the stock market is inflated. When it busts, that mirage will be gone but the real problems remain.
Better start a business.
Feel free to forward this by email to three of your friends.
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