Thursday, March 31, 2005
A New Economic Elite
A New Economic Elite Hans Sennholz Jan 2005
Washington think tank informs us that the average annual compensation of the top 100 chief executives amounts to an astonishing $37.5 million, which is 1000 times the pay of an average worker. The top one percent of households reportedly earns 20 percent of all incomes and owns 33.4 percent of all net worth. The most astonishing feature of such concentration of wealth in the hands of a tiny elite is the utter lack of concern and comment by the American media. They apparently find nothing wrong with such glaring inequality.
We may readily agree with the media as long as the great chasm of income and wealth stems from great differences in economic productivity. Surely, we cannot fault the great American entrepreneurs who in ages past built famous enterprises employing thousands of workers and serving millions of consumers. They discovered new methods of production, opened new markets, and developed new sources of raw materials throughout the world. They succeeded by serving and pleasing consumers. Their talents of enterprise actually raised American standards of living to one of the highest in the world. And their labors bridged the wide legal, social, and economic gulf that separated the social classes throughout the ages.
The economic order that developed gradually during the 20th century gave life to yet another economic and social elite which does not seek new methods of production and does not give employment to thousands of workers; it shrewdly speculates on the effects of various government policies, such as inflation, credit expansion, and new regulations and controls. An economist who visits the new elite may actually discern three distinct branches that cooperate as readily as they feud with each other.
A large branch does not create new enterprises nor give employment to a single worker. It opens no markets nor develops new products. Its members thrive on boom-and-bust cycles which afford great opportunities to traders who observe and understand the portentous policies of the Federal Reserve and the U.S. Treasury. They may manage investment trusts holding corporate stock worth billions of dollars or merely look after their own accounts. They weigh and appraise political intention and government intervention, always gauging the consequences, acting in anticipation, and profiting immensely from political moves. While many businessmen suffer painful losses during a business cycle, they succeed in increasing their funds throughout it all.
These speculators actually render an important service. The Federal Reserve and the U.S. Treasury frequently intrude on and disrupt the smooth performance of markets, which then must readjust; they actually facilitate the adjustment. They anticipate future price movements, assume market price rick, and add liquidity and capital to the markets. Theirs is a necessary and productive activity.
A remarkable feature of this new elite is its frequent disagreements and altercations with the other branches of the business elite. Its members may find frequent fault with and cast aspersions on the elite that actually manages the production. They prefer to support and consort with the political powers that shape the economic policies, seeking the company of well-known politicians who in turn feel at ease with generous nouveaux riches.
Another branch of the new elite consists of chief executives whose compensation usually comprises a base salary and incentive options. They earn million-dollar lucre whenever the Federal Reserve blows stock market bubbles and corporate share prices soar to lofty price-earnings ratios. During the 1990s-bubble they pocketed hundred-million-dollar profits without any particular efforts of their own. They created no new industries and opened no new markets. The corporations they managed did not grow and corporate profits stagnated or even declined. But stock prices soared and CEOs reaped much lucre at the expense of their own stock holders. For every bubble profit taken is total worth consumed. It waters the stock and diminishes the property of all other stockholders. To remedy the situation, the corporation must henceforth increase its assets without increasing its outstanding shares or reduce outstanding shares without reducing assets. CEOs probably are aware of these implications, but few, if any, have ever returned their bubble lucre to losing stockholders.
The most powerful elite is yet another; it springs from political power that holds authority over the body politic. It is the natural extension of the new economic order known by various labels such as the New Deal, the Great Society, and other Democratic and Republican Deals. They made politics an important vocation and elevated politicians to positions of importance and eminence. Surely, politicians have to be ever mindful of public opinion which is shaped by the elite of education and communication. Many master the art of political communication and thus manage to perpetuate themselves in office. In their footsteps their children are laboring to forge a self-perpetuating political elite.
This country is not about to degenerate into a class-based society led by a ruling elite. Competition is a time-honored practice, a cultural custom followed from generation to generation. But, under the influence of collectivist ideologies, many politicians and journalists are ever eager to strike at successful entrepreneurs who earn much more than they do. It is difficult to ascertain their motives; it can be simple envy which consumes many men, or it can be economic ignorance. After all, market economics is barred from most universities and is unknown to leading politicians and journalists. It may explain why most politicians are ever eager to regulate industrial and commercial activity and strike at the economic elite with confiscatory taxation. Unfortunately, regulation and taxation tend to hamper economic activity, inhibit productivity, and depress levels of living. But they create ever new profit opportunities for the new economic elite.
Hans F. Sennholz
www.sennholz.com
Washington think tank informs us that the average annual compensation of the top 100 chief executives amounts to an astonishing $37.5 million, which is 1000 times the pay of an average worker. The top one percent of households reportedly earns 20 percent of all incomes and owns 33.4 percent of all net worth. The most astonishing feature of such concentration of wealth in the hands of a tiny elite is the utter lack of concern and comment by the American media. They apparently find nothing wrong with such glaring inequality.
We may readily agree with the media as long as the great chasm of income and wealth stems from great differences in economic productivity. Surely, we cannot fault the great American entrepreneurs who in ages past built famous enterprises employing thousands of workers and serving millions of consumers. They discovered new methods of production, opened new markets, and developed new sources of raw materials throughout the world. They succeeded by serving and pleasing consumers. Their talents of enterprise actually raised American standards of living to one of the highest in the world. And their labors bridged the wide legal, social, and economic gulf that separated the social classes throughout the ages.
The economic order that developed gradually during the 20th century gave life to yet another economic and social elite which does not seek new methods of production and does not give employment to thousands of workers; it shrewdly speculates on the effects of various government policies, such as inflation, credit expansion, and new regulations and controls. An economist who visits the new elite may actually discern three distinct branches that cooperate as readily as they feud with each other.
A large branch does not create new enterprises nor give employment to a single worker. It opens no markets nor develops new products. Its members thrive on boom-and-bust cycles which afford great opportunities to traders who observe and understand the portentous policies of the Federal Reserve and the U.S. Treasury. They may manage investment trusts holding corporate stock worth billions of dollars or merely look after their own accounts. They weigh and appraise political intention and government intervention, always gauging the consequences, acting in anticipation, and profiting immensely from political moves. While many businessmen suffer painful losses during a business cycle, they succeed in increasing their funds throughout it all.
These speculators actually render an important service. The Federal Reserve and the U.S. Treasury frequently intrude on and disrupt the smooth performance of markets, which then must readjust; they actually facilitate the adjustment. They anticipate future price movements, assume market price rick, and add liquidity and capital to the markets. Theirs is a necessary and productive activity.
A remarkable feature of this new elite is its frequent disagreements and altercations with the other branches of the business elite. Its members may find frequent fault with and cast aspersions on the elite that actually manages the production. They prefer to support and consort with the political powers that shape the economic policies, seeking the company of well-known politicians who in turn feel at ease with generous nouveaux riches.
Another branch of the new elite consists of chief executives whose compensation usually comprises a base salary and incentive options. They earn million-dollar lucre whenever the Federal Reserve blows stock market bubbles and corporate share prices soar to lofty price-earnings ratios. During the 1990s-bubble they pocketed hundred-million-dollar profits without any particular efforts of their own. They created no new industries and opened no new markets. The corporations they managed did not grow and corporate profits stagnated or even declined. But stock prices soared and CEOs reaped much lucre at the expense of their own stock holders. For every bubble profit taken is total worth consumed. It waters the stock and diminishes the property of all other stockholders. To remedy the situation, the corporation must henceforth increase its assets without increasing its outstanding shares or reduce outstanding shares without reducing assets. CEOs probably are aware of these implications, but few, if any, have ever returned their bubble lucre to losing stockholders.
The most powerful elite is yet another; it springs from political power that holds authority over the body politic. It is the natural extension of the new economic order known by various labels such as the New Deal, the Great Society, and other Democratic and Republican Deals. They made politics an important vocation and elevated politicians to positions of importance and eminence. Surely, politicians have to be ever mindful of public opinion which is shaped by the elite of education and communication. Many master the art of political communication and thus manage to perpetuate themselves in office. In their footsteps their children are laboring to forge a self-perpetuating political elite.
This country is not about to degenerate into a class-based society led by a ruling elite. Competition is a time-honored practice, a cultural custom followed from generation to generation. But, under the influence of collectivist ideologies, many politicians and journalists are ever eager to strike at successful entrepreneurs who earn much more than they do. It is difficult to ascertain their motives; it can be simple envy which consumes many men, or it can be economic ignorance. After all, market economics is barred from most universities and is unknown to leading politicians and journalists. It may explain why most politicians are ever eager to regulate industrial and commercial activity and strike at the economic elite with confiscatory taxation. Unfortunately, regulation and taxation tend to hamper economic activity, inhibit productivity, and depress levels of living. But they create ever new profit opportunities for the new economic elite.
Hans F. Sennholz
www.sennholz.com
SAY WHAT
http://www.briefing.com/Silver/Calendars/EconomicCalendar.htm
Again,
Americans' Incomes Rise ***Solidly***
Thu 8:43AM ET - Associated Press
Americans' incomes, bolstered by strong gains in hiring, rose by 0.3 percent in February while consumer spending climbed at an even faster pace of 0.5 percent, the government reported Thursday.
**Solidly my bleep! WHO didn't mention prior DECLINE of 2.3% was revised worse to 2.5% ??
SO, when 'sperts were looking for .5% GAIN in wages how is .3% SOLID? coming off addt'l .2% revision?
Wonderful SPENDING KEEPS outpacing wages?
I must really be in Willy Wonka-Land!
Again,
Americans' Incomes Rise ***Solidly***
Thu 8:43AM ET - Associated Press
Americans' incomes, bolstered by strong gains in hiring, rose by 0.3 percent in February while consumer spending climbed at an even faster pace of 0.5 percent, the government reported Thursday.
**Solidly my bleep! WHO didn't mention prior DECLINE of 2.3% was revised worse to 2.5% ??
SO, when 'sperts were looking for .5% GAIN in wages how is .3% SOLID? coming off addt'l .2% revision?
Wonderful SPENDING KEEPS outpacing wages?
I must really be in Willy Wonka-Land!
TROUBLE BEHIND, TROUBLE AHEAD!
http://www.thelongwaveanalyst.ca/winterwatch/WW_March22_05_A.htm Ian Gordon
The lessons of the past are going ignored by most. There is NO evidence of a resumption of a NEW CYCLICAL BULL MKT, only the waning days of one....the corection to initial wave down of a SECULAR BEAR MKT.
20 PLUS year bull mkt, in general, the bear market that follows a bull mkt is usually equal to what previous extremes and intensity was experienced.....a BEAR MKT which took stocks down to PE of 30 DIV YIELD OF 1.7% was indicative of previous market tops! And instead of previous bear markets where bearish plurality exceeded 40 weeks running, we have had maybe 3 weeks during entire bear market where that was true!
ONLY MASSIVE FED intervention turned the course.
Here we are today, BOOMING REAL ESTATE MKT! now at same % of household wealth as was the holding of equities at 2000 top! a bubble? 140% of GDP.
WHat did the FED actions and BUSH policies get us?
:New tax policies favoring the RICH.
New BAnkruptcy laws making it harder to disgorge debt.
A WAR PResidency.
POLICIES aimed at increasing CONSUMPTION......we cannot keep up with demand so we IMPORT MOST of what we need.....hence....loss of over 2.5 Million manufacturing jobs, and the building of CHina as SUper Power, in many cases companies have become marketing arms of these companies not even associated with design phase or any phase except marketing.
Total CREDIT MARKET DEBT exceeds any past EXTEME now near 315% of GDP! if we keep current pace we will end 2005 near 350%! UNHEARD OF IN MODERN TIMES.
GOV LIES and manipulates data to show LOW INFLATION, especially by NOT INCLUDING HOUSING PRICES!!!!!!!!!!!!!!!!! instead using a RENTERS INDEX and THAT makes up nearly 25% of CPI !!!
(I have just raised MOST of my prices 10%) !!
FED action caused CHinese demand to grow for raw materials sending CRB to 20 plus yr highs along with OIL STEEL etc prices skyrocketing....WHERE do these price increases show?
OVER 30% of housing sold in 2004 for 2nd home or speculation!
Warning signs.......
GM's $300 BBBAAABILLION in debt near JUNK STATUS...
FANNIE MAE stock COLLAPSED.
WMT right at 52 week low....as is JPM !! The leaders of tech MSFT CSCO INTC have gone nowhere.
200 WK moving avg's are converging on 400 WK...not seen in 10 maybe over 20 years.
We are in RISING INTEREST RATE ENVIRONMENT.....this is NOT STOCK FRIENDLY! 3 steps and stumble rule are now 7 steps.
KUDLOW has OWN SHOW.
CRAMER has OWN SHOW, and is allowed to hype his own positions......he is shown as investment GURU.
Commercials abound for learning how to trade stocks and sell real estate for a living....anyone can do it!
LONG TERM TRIN ABOVE 1.0 55day and longer.
Now MOST of AMERICA OWN their HOME....has a NEW CAR.....we have excessively borrowed from FUTURE DEMAND, only gov spending left to spur economy?
With a SAVINGS RATE NEAR ZERO, and DEBT Up to their eyeballs....AMERICA is ILL PREPARED for a less than perfect landing.
all imho DURATEK
The lessons of the past are going ignored by most. There is NO evidence of a resumption of a NEW CYCLICAL BULL MKT, only the waning days of one....the corection to initial wave down of a SECULAR BEAR MKT.
20 PLUS year bull mkt, in general, the bear market that follows a bull mkt is usually equal to what previous extremes and intensity was experienced.....a BEAR MKT which took stocks down to PE of 30 DIV YIELD OF 1.7% was indicative of previous market tops! And instead of previous bear markets where bearish plurality exceeded 40 weeks running, we have had maybe 3 weeks during entire bear market where that was true!
ONLY MASSIVE FED intervention turned the course.
Here we are today, BOOMING REAL ESTATE MKT! now at same % of household wealth as was the holding of equities at 2000 top! a bubble? 140% of GDP.
WHat did the FED actions and BUSH policies get us?
:New tax policies favoring the RICH.
New BAnkruptcy laws making it harder to disgorge debt.
A WAR PResidency.
POLICIES aimed at increasing CONSUMPTION......we cannot keep up with demand so we IMPORT MOST of what we need.....hence....loss of over 2.5 Million manufacturing jobs, and the building of CHina as SUper Power, in many cases companies have become marketing arms of these companies not even associated with design phase or any phase except marketing.
Total CREDIT MARKET DEBT exceeds any past EXTEME now near 315% of GDP! if we keep current pace we will end 2005 near 350%! UNHEARD OF IN MODERN TIMES.
GOV LIES and manipulates data to show LOW INFLATION, especially by NOT INCLUDING HOUSING PRICES!!!!!!!!!!!!!!!!! instead using a RENTERS INDEX and THAT makes up nearly 25% of CPI !!!
(I have just raised MOST of my prices 10%) !!
FED action caused CHinese demand to grow for raw materials sending CRB to 20 plus yr highs along with OIL STEEL etc prices skyrocketing....WHERE do these price increases show?
OVER 30% of housing sold in 2004 for 2nd home or speculation!
Warning signs.......
GM's $300 BBBAAABILLION in debt near JUNK STATUS...
FANNIE MAE stock COLLAPSED.
WMT right at 52 week low....as is JPM !! The leaders of tech MSFT CSCO INTC have gone nowhere.
200 WK moving avg's are converging on 400 WK...not seen in 10 maybe over 20 years.
We are in RISING INTEREST RATE ENVIRONMENT.....this is NOT STOCK FRIENDLY! 3 steps and stumble rule are now 7 steps.
KUDLOW has OWN SHOW.
CRAMER has OWN SHOW, and is allowed to hype his own positions......he is shown as investment GURU.
Commercials abound for learning how to trade stocks and sell real estate for a living....anyone can do it!
LONG TERM TRIN ABOVE 1.0 55day and longer.
Now MOST of AMERICA OWN their HOME....has a NEW CAR.....we have excessively borrowed from FUTURE DEMAND, only gov spending left to spur economy?
With a SAVINGS RATE NEAR ZERO, and DEBT Up to their eyeballs....AMERICA is ILL PREPARED for a less than perfect landing.
all imho DURATEK
ARMS INDEX
TRIN
BIAS IS FOR UPSIDE ACTION, ANYTHING LESS I WOULD TAKE AS TROUBLING.
TRIN EXPLANATION
SO then LONGER TERM TRIN ADVISES CAUTION?
Just ONE indictaor.
VIX fell below 200 SMA
D
BIAS IS FOR UPSIDE ACTION, ANYTHING LESS I WOULD TAKE AS TROUBLING.
TRIN EXPLANATION
SO then LONGER TERM TRIN ADVISES CAUTION?
Just ONE indictaor.
VIX fell below 200 SMA
D
Wednesday, March 30, 2005
GDP
Q4 GDP 3.8%, Final sales 3.4%, 2.3% price index.Key Factors
Trade deficit provided a -1.4% negative contribution from net exports. Imports surge 11%, exports just 3%.
Trade deficit provided a -1.4% negative contribution from net exports. Imports surge 11%, exports just 3%.
A consumption economy! And as you all know LITTLE INFLATION! LOL
D
NASDAQ
10 yr chart
Notice FLATTENING 40 WK avg (200 day) and notice we ARE THERE!
WIth the MACD curling down from above I will guess after brief rally the 40 WK SUPPORT will be broken. IMHO
D
Notice FLATTENING 40 WK avg (200 day) and notice we ARE THERE!
WIth the MACD curling down from above I will guess after brief rally the 40 WK SUPPORT will be broken. IMHO
D
RALLY DAZE
http://stockcharts.com/def/servlet/SC.web?c=$CYC:$CMR,uu[w,a]daclyiay[pc20!c5!f][vc60][iut!La12,26,9!Lh14,3]&pref=G not budging.
NDX right up to 20 EMA
VIX dropping like stone.
LOW LOW TRIN (bearish)
HIGH VOLUME ON DOWN DAYS, WEAK VOLUME TODAY, end of month operator window dressing, IMHO APRIL can be brutal.
Yippe
NDX right up to 20 EMA
VIX dropping like stone.
LOW LOW TRIN (bearish)
HIGH VOLUME ON DOWN DAYS, WEAK VOLUME TODAY, end of month operator window dressing, IMHO APRIL can be brutal.
Yippe
Tuesday, March 29, 2005
THE NEW BUBBLE ECONOMY "FALSE WEALTH EFECT"
REal Estate Boom ....turning to bust?
TIME TO BE WARY Real Estate assets have risen to 140% of GDP!!! same as the bubble stocks did in 2000 !
Mere coincidence? My ass! Greenspan and cohorts supplanted ONE bubble with another, as they play their deadly game of talking down inflation in their Goldilocks economic scenario that couldn't be farther from the truth!
Let me add a stat I have mentioned before. More than 30% of all homes bought last year were for 2nd homes or speculation!
HOME IS THE HEART OF THE MATTER CONTRARIAN INVESTOR APRIL 2004
2000 BUBBLE consisted of very LIQUID stocks, but now consists of very ILLIQUID HOMES.
SKYROCKETING homes sales are NOT an effect of growth in wages and incomes which have been stagnant, but merely historic low interest rates and liquidity.
Is it good that last year about ONE out of every THREE homes were not for a primary living space?
We are in uncharted territory my friends, but as history has shown us, we ALWAYS REVERT BACK TO THE MEAN .
That would mean much pain for the many unprepared.
STock prices can jump around, and there is little fear, bu it doesn't mean something isn't lurking out there, something totally out of control.
Duratek
TIME TO BE WARY Real Estate assets have risen to 140% of GDP!!! same as the bubble stocks did in 2000 !
Mere coincidence? My ass! Greenspan and cohorts supplanted ONE bubble with another, as they play their deadly game of talking down inflation in their Goldilocks economic scenario that couldn't be farther from the truth!
Let me add a stat I have mentioned before. More than 30% of all homes bought last year were for 2nd homes or speculation!
HOME IS THE HEART OF THE MATTER CONTRARIAN INVESTOR APRIL 2004
2000 BUBBLE consisted of very LIQUID stocks, but now consists of very ILLIQUID HOMES.
SKYROCKETING homes sales are NOT an effect of growth in wages and incomes which have been stagnant, but merely historic low interest rates and liquidity.
Is it good that last year about ONE out of every THREE homes were not for a primary living space?
We are in uncharted territory my friends, but as history has shown us, we ALWAYS REVERT BACK TO THE MEAN .
That would mean much pain for the many unprepared.
STock prices can jump around, and there is little fear, bu it doesn't mean something isn't lurking out there, something totally out of control.
Duratek
Monday, March 28, 2005
DIVERGING
http://stockcharts.com/def/servlet/SC.web?c=$CYC:$CMR,uu[w,a]daclyiay[pc20!c5!f][vc60][iut!La12,26,9!Lh14,3]&pref=G against rally attempt.
End of days action shows smart money exiting, IMHO
NAZ prints at days low. VOLUME weak action NOT bullish IMHO
End of days action shows smart money exiting, IMHO
NAZ prints at days low. VOLUME weak action NOT bullish IMHO
Sunday, March 27, 2005
SOME HOME SELLERS FRET
http://biz.yahoo.com/ap/050325/home_sales_2.html
The Markets and GLOBAL economies are being levitated by a SEA OF LIQUIDITY from the Central Banks. A specific date for an end cannot be predicted but an END will come to this game.
GOODS being shipped in from ASIA may not be going up much (because of dollar peg) as other currencies are being kept weak by forced dollar buying, but all else is RISING..health care energy, food housing, tuition.
The FED may try and talk out of both sides of their mouth, by dear readers they aren't FOOLING all of us!
And it is taking ever more $$ of debt to turn into a $ of GDP, we already have surpassed any historic precedent when it comes to liquidity, money supply growth debt etc, there is no EASY way out.....down.
Imbalances and investment are so screwed up and misallocated there is no easy way out.
I feel a crash of unprecedented severity could occur at ANY TIME, IMHO.
The JUICE BAR is still open, but for how long can you squeeze lemmons into lemonade!?
Duratek
The Markets and GLOBAL economies are being levitated by a SEA OF LIQUIDITY from the Central Banks. A specific date for an end cannot be predicted but an END will come to this game.
GOODS being shipped in from ASIA may not be going up much (because of dollar peg) as other currencies are being kept weak by forced dollar buying, but all else is RISING..health care energy, food housing, tuition.
The FED may try and talk out of both sides of their mouth, by dear readers they aren't FOOLING all of us!
And it is taking ever more $$ of debt to turn into a $ of GDP, we already have surpassed any historic precedent when it comes to liquidity, money supply growth debt etc, there is no EASY way out.....down.
Imbalances and investment are so screwed up and misallocated there is no easy way out.
I feel a crash of unprecedented severity could occur at ANY TIME, IMHO.
The JUICE BAR is still open, but for how long can you squeeze lemmons into lemonade!?
Duratek
Saturday, March 26, 2005
PRUDENT WEEKEND UPDATE
Doug Noland's Credit BUbble report
Conclusion for those who won't read the whole tirade:
We are in the early first round of what will surely be a challenging period of heightened financial instability and uncertainty. The financial backdrop is changing, although I would expect fits and starts, unpredictability and global market bouts of manic-depressive disorder. It is, however, often a case of crises taking much longer than one would expect to develop, only to unfold rather quickly once in motion. Still, recent views of a U.S. and global slowdown, if they come to be supported by economic developments, would be expected to take some pressure off of the U.S. interest rate markets. I am at this point skeptical that growth is poised to slow quickly and sufficiently enough to contain rising inflationary pressures (look at bank Credit!). More likely, I expect continued pressure on interest rates and the leveraged players. That the Leveraged Speculating Community is arguably immersed in The Most Crowded Trades in History leaves one apprehensive. U.S. asset markets have become addicted to low rates and abundant liquidity. The global economy and markets have similarly grown liquidity dependent. Today’s market instability and resulting heightened risk aversion are Speculator and Liquidity Unfriendly. And there is always that specter of a whiff of smoke being sniffed in the exceedingly crowded theater.
Conclusion for those who won't read the whole tirade:
We are in the early first round of what will surely be a challenging period of heightened financial instability and uncertainty. The financial backdrop is changing, although I would expect fits and starts, unpredictability and global market bouts of manic-depressive disorder. It is, however, often a case of crises taking much longer than one would expect to develop, only to unfold rather quickly once in motion. Still, recent views of a U.S. and global slowdown, if they come to be supported by economic developments, would be expected to take some pressure off of the U.S. interest rate markets. I am at this point skeptical that growth is poised to slow quickly and sufficiently enough to contain rising inflationary pressures (look at bank Credit!). More likely, I expect continued pressure on interest rates and the leveraged players. That the Leveraged Speculating Community is arguably immersed in The Most Crowded Trades in History leaves one apprehensive. U.S. asset markets have become addicted to low rates and abundant liquidity. The global economy and markets have similarly grown liquidity dependent. Today’s market instability and resulting heightened risk aversion are Speculator and Liquidity Unfriendly. And there is always that specter of a whiff of smoke being sniffed in the exceedingly crowded theater.
ALSO Broad money supply (M3) declined $11.8 billion to $9.49 Trillion (week of March 14). Year-to-date, M3 has expanded at a 1.3% rate.
The FED wants YOU to believe its policy is for TIGHT MONEY But it is not. Raising a paltry .25 pt each meeting is a JOKE! NOT nary keeping up with inflation, all the while they keep PUMPING the system with MONEY! JUST LOOK at all the bank credit in Noland's report.
ALL we get from officials/FED is LIES and manipulation. They were in the market BUYING TREASURIES in latest week, to try and KEEP long rates down? Or to use that money in their operations to keep PUMPING the primer. JUST look at last weeks housing data STILL ON FIRE, are they really trying to cool that market?
My companies Health Care plan going up ANOTHER 20% even as the bastards made $100 M last year.
Have we lost count of the multiple bubbles formed? THE POP will be heard round the world.
ME, I keep rasing cash levels, I will be prepared to ACT when REAL VALUES appear again.
Duratek
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