This isn’t a surprise. We are still in the midst of a lingering depression/recession. People need to get by and retirement for many is down the road in hopefully more prosperous times. Right now the kids need shoes and school clothes.
The one and only time I met Ron Paul was in his office in DC in 2007. I had long admired him and I had come to pitch Dr. Paul on becoming a client of mine. I was a fledgling stock broker and I thought I might be able to interest him in some gold stocks.
What’s funny is that as soon as I walked through the door of his office and he and I sat down I forgot all about doing business and we just talked politics and strategy for about 20-25 minutes.
I left his office with a deepened respect for the man. Something which rarely happens (I now know) after meeting a politician in person.
Well, there is a good bit of it on this website that’s for sure. And it is growing. Today crony capitalism is talked about openly. A few years ago few people knew the term. Read More
Another good one from Stossel.
In the attached article from CNBC the point is made that the real bubble is likely an inflated confidence in the Federal Reserve.That come what may, the Fed will intervene in markets and buoy them. So what if stocks are over extended, Yellen and the FOMC will save the banker’s posteriors. As we’ve said before this sounds very much like “housing prices always go up” to us. If sentiment regarding the Fed were to change, if traders were to fear that things were bigger than the Fed, a downdraft could be wicked.
We’ll see. There’ve been many blips over the past 5 years and for the most part the pro-Fed folks have been right as far as equity prices are concerned. (Little else.) Maybe this is just another blip on the way to Dow 20,000 and beyond.
But maybe not.
So the I guess the Fed needs to start thinking about cutting rates right? No one can afford monthly payments because rates are too high right? But they are as low practically as they have ever been you say? Uh oh, what does that mean?
Washington and the Fed think they can plan out society. That they can manipulate the levers of the economy to elicit positive outcomes (mostly for them). That leaving the world to the “whims of the marketplace” is madness. That dispassionate managers (no one is dispassionate, especially political managers) can and will make the world anew. There is no God. Government is God and it will giveth and taketh as it pleases.
The National Review’s Jonah Goldberg argues that what is called the American “Left” will never really fight crony capitalism. That what the progressives actually want is not the separation of business and the state but business which will do as it is told. Business as junior partner to the government. A lapdog.
Is he right?
Dodd-Frank, though passed 4 years ago in the wake of the Crash still isn’t even half written. It may never be fully written. As we speak regulators write new rules and regs with help from the financial industry of course. “It’s a living document.” Sigh.