We’ve had an amazing run in the markets and many people think the bull will just keep on running. Maybe so. But eventually every bull runs out of steam even ones which are fed by the Fed.
Can’t you just feel the excitement in the economy? It’s palpable. Boom. Boom. Boom. Good times! Happy days!
We’ve been saying this for 2 years. Now even the people who worked for Obama are admitting that Obamacare is a crony capitalist jack.
(From The Daily Caller)
“Well, I think — here’s what’s interesting. There’s a huge gap between the professed values and visions of corporate CEOs and how their lobbyists operate in Washington,” Obama said. “And I’ve said this to various CEOs. When they come and they have lunch with me — which they do more often than they probably care to admit (laughter) — and they’ll say, you know what, we really care about the environment, and we really care about education, and we really care about getting immigration reform done — then my challenge to them consistently is, is your lobbyist working as hard on those issues as he or she is on preserving that tax break that you’ve got? And if the answer is no, then you don’t care about it as much as you say.” -Barrack Obama
There is actually a pretty good case for the idea that insider trading should not be illegal. That information is information and that sales or purchases of stocks based on such information just makes the market more efficient.
That aside it is still illegal and that means if you and I were to engage in it we might go to jail. For others however this does not seem to be a concern.
The Fed Agrees.
Professor Jeremy Siegel thinks it is.
I remember when Bernanke said he was going to keep rates at 0 until 2014 and everyone was up in arms. Now he’s telling us that we had better get used to lower than natural interest rates and all the distortion it creates in the economy for the next 30 years or so.