– Stocks Are Officially in a Blow Off Top (ZeroHedge, May 9, 2013):
This is the culmination of Bernanke’s life’s work. In his mind he has succeeded in saving capitalism by spending trillions of Dollars pushing stocks higher.
It doesn’t matter that the US hasn’t experienced 3% GDP growth a SINGLE year since he took the Fed.
It doesn’t matter that the employment ratio is at levels last seen back in the early ‘80s. It doesn’t matter that there are now a record number of Americans on food stamps.
All that matters is that stocks are up. That equals a recovery for the Fed.
This whole mess is sad really. Having seen two bubbles burst in the last 13 years, we all know how this ends: in disaster. And each time the disaster has been bigger. Indeed, the 2008 collapse was a far worse thing than the Tech Crash.
And what’s coming will be even worse than 2008. This time around, entire countries will go bust, not just banks.
On top of this, when this bubble bursts, interest rates will already be at zero and the Fed’s balance sheet swollen with garbage debts. The Fed and other Central Banks WON’T have the usual tools available to save the day.
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