Whomever said Money doesn't grow on trees does not work for the FED or the FED racketeers.
http://seekingalpha.com/article/192318-how-have-u-s-stocks-defied-gravity-for-so-long?source=from_friend
At some point, as the fraud of the banksters is being greeted by pitchforks, there will be a removal of the 20% FED stimulus/replacement of the actual GDP that was lost due to the pricking of the easy money house building and leveraged buyout of every kind of securitized debt bubble.
When the buyer of last resort is out of the equation, the you shall see a massive and unprecedented crash that will retrace all the gains within weeks.
The stock market is the little fish in this equation. It is the excesses of the Bond market that created the stock market bubble that actually started in 1982 and culminated in 2000.
We've just witnessed a whole decade disappear in an attempt to reflate that bubble via Real Estate, easier credit, massive sovereign debt, creatively fictitious accounting,direct government intervention into everything including the purchasing of the same debt that the government created and the purchasing of private debt and securities in order to not only put a floor to the market but actually be the market.
This is going to go down as the weirdest way for a country to descend into Fascism: by rigging what was previously seen as the bastion of Capitalism: the Stock and debt markets.
To say that it is surreal is an understatement. Ever the hardcore communists would be turning in their graves and the likes of Mussolini would be extremely jealous at the brutality of the method of execution of stated fascism.
Most of the GDP gains over the last two decades would not have been present had there not been a private and public debt induced sugar rush from 1985 till now.
The market has been going up based on fictitious profits gained on the backs of massive amounts of debt.
The chickens have come home to roost and either you have a comatose growth state while paying the debt back or you destroy the debt.
Either way, this is not a bullish time. The stamped of collapsing debt bubbles will gore the bull.
Even the bears will not be able to make that much money due to the ferociousness of the coming collapse.
And here is a riddled marker: The market will begin an expedited and unprecedented decline one week after the skyrocketing of a certain security long though of to have been dead.
The FALLOUT of the coming collapse will be the stuff that future generations of kids study in order to learn from failed economic systems.
Detroit Homes are selling for as little as $10. Of Course We've recovered. Just bring your crow bar and your Mad Max reinforced car and you too can own a part of the dreamy American nightmare.
"The once thriving industrial city has suffered a dramatic decline following the global economic crisis.
According to Tim Prophit, a real estate agent, the crisis has led to a unprecedented portfolio of homes, but they are failing to sell.
He said there were homes on the market for $100 (£61), but an offer of just $10 (£6) would be likely to be accepted.
Speaking on a BBC 2 documentary, Requiem for Detroit, to be screened on Saturday, Mr Prophit said: "The property is listed by the city of Detroit as being worth $35,000 (£22,000), but the bank know that is impossible to ask.
"This part of town has got a lot of bad press in the media because it featured in Eminem's film 'Eight Mile', but that particular road is fifteen minutes up the road and that is a long way in Detroit."
http://www.telegraph.co.uk/news/worldnews/northamerica/7427691/Detroit-family-homes-sell-for-just-10.html
Thursday, March 11, 2010
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