Death to savers! The lack of higher interest rates channels more fools into the market.
Exactly.
Unemployment ABOVE 8% for almost 4 years.
Median income DOWN more than 8% in the last 4 years.
Yet, the Dow and SP 500 are near their all time 2000 bubble highs.
The ever optimistic financial press is an accessory to this criminal deception.
If a Republican was president and running for reelection, EVERY business news story would carry a dark hint of pending catastrophe.
And the bond market itself is a ticking time bomb.
Bond king Bill Gross of Pimco openly admits his strategy is to “front run” the Federal Reserve.
When the Fed recently announced it would begin buying mortgage backed securities, Pimco started scooping up billions of dollars of them.
Pimco’s strategy?
When the Fed steps in, Pimco will slowly sell back all their holdings for a couple percentage points of gain.
Bond investors who are not nimble enough to sell out at the first sign of inflation, or currency risk, or default risk, are going to get crushed when thousands of panicked investors rush to the Exit door at the same time.