Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Gloe> I jest but I''ll never forget the week I left the Twin Cities in Minnesota for good in the fall of 1974. The economy was in the grips of a horrible recession. The stock market had collapsed to levels not seen since 1958! PEs were 6-9, yields 6,7, even 10%. I came outside my office building downtown, there was this big man dressed as a Viking, with various leathers and furs, and one of those pointy helmets with horns on. He was ringing a bell and was wearing a sandwich board on which was emblazoned THE END IS NEAR. I handed him some money, and he said, "you take it friend, you'll need it, I'm prepared.". Everyone says nobody rings a bell at the bottom but he did. The market went up from there. I haven't seen anybody like that yet, so the bottom ain't here. Instead I see CNBC with stock jockies shouting how stocks are a buy with PE's of 30, yields of 1%, and all that when the growth rate in the economy is 1% and dropping. From what I can tell we are right back at July 2001 again. Everyone was all excited about the fed and tax cuts then, and look what happened.

http://www.mrci.com/special/wspi01.asp