Ping!
A year ago, all of the worry was about deflation.
http://www.freerepublic.com/focus/f-news/1775286/posts
If you don’t count energy and food, there is no inflation. And pay no attention to the fact that the dollar is down 80% in five years. None of this matters, as long as the evil doers are spat upon (within UN limits, of course).
Love that wall of worry. Says stocks are coiling up. Watch and see. We’ll be sitting at 15K looking back going wow I guess we didn’t give the bankers enough credit for covering their rears. It got loose but it’s not like stocks where companies dry up. Real estate is real. As long as the government stays out other than helping a few show cases, it’ll correct itself. Already has probably.
“Add “decoupling” to your lexicon and you will be au courant: analysts who confidently predicted America’s problems would not spread, are now less certain that the US economy is decoupled from the rest of the world.”
I have never found a socially acceptable (in today’s society) word to describe the sheer idiocy of any “analyst” who touted the idea that the world had “decoupled” from the U.S. economy. It is ABSOLUTELY mind-boggling.
The cost of credit default swaps in the Corporate bond structured finance market are rising very rapidly. These swaps are insurance against the securities turning out to be junk. Looking back at the collapse of residential mortgage backed structured debt securities the first real sign of trouble was a rapid rise in the cost of credit default swaps.
Seems likely we haven’t seen the last of the credit contraction, not by a long shot.