Discussion in 'Economics' started by maxitronixy, Dec 30, 2009.
This is just a liquidity run, yes or no?
Of course its a damn liquidity run, the system is drenched with trillions of monopoly dollars that are just bringing about the illusion of a recovery. What happened last time greenspan led the economy with low interest rates and easy credit, it created the biggest asset bubble known to man and guess what? bubble ben bernanke is doing the same exact thing.
Keep thinking this is a recovery and you will be fooled once again.
The fallacy here is to strictly correlate equity indexes with (economic) real output.
To translate, equity indexes can and probably* will continue to rise, since the game plan of the Fed being to manufacture a significant rise in those equities to exhort true cash to enter the marketplace, ie. investors to get out of cash and into equities, which hasn't happened yet. That will spur a significant upside. During that upside the economy would pick up also.
In other words, no logical choices are present for this poll.
That asset bubble will soon burst.
To extort true cash to enter the marketplace?
To what end?
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