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A Day in the Life of the Market~ Significant Implications for All
This may not be the stuff of bull market rallies and adequate debt servicing. While the majority expect Helicopter Ben to inflate the dollar out of existence for Wall Street business as usual, we think the less popular view may be more accurate:
Widespread debt defaults may trigger a cascade of lower asset prices while government red tape and taxes continue to raise the nominal cost of living. It’s tough for the disappearing middle class to pay bills and mortages or even taxes when out of work facing rising bills.
We can all hear the Vermont Senator claiming he is tired of getting calls from constituents complaining about 30% credit card interest rates while bankers get bailouts and bonuses for running a gambling casino for their own benefit: If they are too big to fail, they are too big to exist.
As the Alabama Senator on the opposite border of the country suggested, our free markets did not fail. Our financial leaders did. We increased debts and decreased employment by rewarding failure (and punishing success.)
Hopefully, at least a few of our elected leaders get it. One of them, Senator from Kanasas, said we are in a huge government bubble, the biggest of all. Toto, we are not in Kansas any more.
A BB reappointment may mean a lower market, if not today, then later.
Enjoy the debate and root for prosperity:
http://www.c-span.org/Watch/C-SPAN2.aspx
Trees do not grow to the sky unless we believe in fairy tales.
Regards*Rich
