"CROWDS AND CREDIT" WHAT IS REAL AND WHAT IS NOT

Doug Wakefield essay with charts

Here is how we got here year by year.......below is growth in the Nat'l Debt/deficits

• 2000 $5.6Trillion *bubble top
• 2003 $6.7 T *bear bottom
• 2007 $8.5 T *bubble top
• 2009 $11.9 T *bear bottom
• 2010 $13.5 T *recovery?
• 2011 $14.1 TRILLION *historic growth in Gov't Debt and FED balance sheet

DEBT CEILING $14,294 TRILLION

Now consider the FED actions/policies are meant to KEEP interest rates LOW, but rates are rising making it more expensive to fund deficits, and this is all occuring while the FED is buying UP Treasury Bonds...directly.

Prior Bear Market was fought and debt increased only by about $1T. THE FED AND GOVT are trying to BUY RECOVERY........when we reach that place, the place where the rock and hard place meet, where the can stops being kicked down the road.....there will be a payback....there will be a reckoning.

It has been PROVEN, each time the FED intervenes with LOW FED FUNDS RATE....a BUBBLE IS BORN.....there is recovery, but there is no control. Now they have gone further than ever before, seemingly with NO END TO THEIR GAME....in for a penny in for a pound.

Can't strip out food and energy from the cost of living, and inflation is rippling around the world.....what my friends will be the cost of theFEDS latest experiment?

IMHO YES the FED has targeted stocks and succeded in bringing them back.........but we also sit here woefully waek, in need of GOVT assistance at historic levels, and this recovery to me resembles none of recent history.

I DO NOT KNOW where the top is, I do feel artificially and manipulated markets eventually run out of the greater fool and collapse.....I DO NOT SEE AT THESE LEVELS GOOD VALUES. chasing the market can be dangerous to your well being

D