valuepump...
"Richard Benson of Specialty Finance Group summed it up nicely. "The new market driven economy is based on managing expectations always upward and manipulating markets to keep asset prices up, and the appearance of wealth high. This is designed to keep businesses and households spending. This economic model, however, has an air of desperation about it."
Good description of the Greenspan Gambit.
"At present, corporate cash flows, and the rate of capacity utilization does not justify any meaningful pick-up in corporate investment or hiring. The household sector continues to spend beyond its means and is sustained only by the extraordinary increase in annual mortgage debt."
Good explanation of the present reality, except I would add that it most certainly does not even begin to justify current valuations. We are very much back in a bubble market, where like a frog being boiled most folks do not recognize their peril, being lulled by the talking heads and analysts into thinking that everything is great and we can go to da moon.
Thanks.
mlsoft
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