THE SONG REMAINS THE SAME

from DOug Nolands weekly missive:



“Down payment requirements” have essentially nothing to do with the lagging U.S. economy. A historic financial Bubble fueled a housing mania. The Bubble collapsed and the mania won’t be reappearing anytime soon. As a reminder of the nature of manias, Nasdaq traded above 5,000 in March 2000 and sits at less than half that level almost a decade later. Japan’s Nikkei traded to 38,957 on December 29, 1989 and closed today at 9,498. Reflations may create new manias, but they don’t rejuvenate the disCredited ones."

The cronies in power must not have studied well their history or they would NOT be trying to reflate the housing bubble, but would be instead supporting small business and business investment, manufacturing.

Instead of handouts to the class who caused the financial crisis and actions which benefit them, they should have been BROKEN UP and any good separated and hence we would NO LONGER have TOO BIG TO FAIL influencing government policy.

Big banks are getting healthier by way of the yield curve and stick market trading at the expense of every day people being forced out of safe returns in search of yield of which the FED has taken away. THOSE CRONIES making money judgements forgot that saving and interest paid on them a sound banking and savings policy for years is a reasonable way to safely make returns which could be spent into the economy, that source is now repudiated.

Foreign Banks seeing inflation cannot raise interest rates or foster even greater carry U S $ trades as our rate sits at 0%..

BUBBLES ALWAYS BURST and leave behind sorrow and devestation, after going through 2 in last 10 years WHY hasn't gov policy and FED action learned their lessons?

I can think of only one reason, well 2. ONE, they are dumb as mud. TWO, GOV is not in control, WALL STREET IS and they look after their own and it has been telegraphed they cannot lose.

Duratek