I picked a bad day to get short - so much for my bearish theory after the post-Fed-fade.
I don't, however, think they're stupid - I think they're politicians who do a great job of stuffing their own wallets at the expense (inflation) of the American people. Look at Greenspan - most still view him as a serious economist. He did nothing more than abandon his former belief in the gold standard, keep interest rates artificially low and print/electronically create a s-load of fiat currency. The politicians got rich while the public went further into debt, suffered through the 2001 - 2003 stock market crash and are now dealing with the government-created hyper-inflationary housing bubble, credit crisis and energy shortage. How many politicians do you think were in banking and housing stocks as they crashed? I suspect far fewer than were in energy stocks as they soared.
I can't wait for the $160 billion "stimulus" checks to arrive. I'm looking forward to our cost of living increasing by $160 billion. JP Morgan should thank the public for the additional inflation we involuntarily accepted to bailout the idiots who lost the latest musical chairs game and got stuck standing with worthless paper. Since when does the Fed bail out investment banks?
Now for my questions: Do you believe all this government- created inflation and manipulation will inevitably result in another major stock market crash? Do you believe the bond market will also crash? I ask because these issues are of great concern to me and you seem very knowledgeable. What do your DOW/S&P 500/NASDAQ charts suggest for the next few years?
Thanks and sorry for the rant.
