Bizzzaro world of maniacal central banking and crackpot financial engineering.
The Chinese behind Alibaba didn’t even have to tap their home market.
Even the comrades in Beijing know that China’s credit tsunami has unleashed a dangerous speculative mania that has no parallel in human history.
I remember well, the fiscal rectitude of the old Japan: In 1981, as the Reagan White House prepared its radical fiscal plan – famously called “riverboat gamble” – we were visited by high-ranking Japanese officials, in a state of shock.
Investors won’t even know what exactly is in the pool.
They’d piled into the new “risk sharing RMBS bonds” issued by Fannie and Freddie. Wall Street provided 80% leverage. Buying frenzy ensued. But it didn’t last long.
Barron’s, 2007: “Against this troubling backdrop, it’s no wonder investors are worried the bull market might end in 2008. But Wall Street’s top equity strategists are quick to dismiss such fears.”
The S&P is up nearly 200% from March 2009. Yet the cardinal measures of Main Street economic health have stagnated.
Nothing is more predictable than Wall Street economists proclaiming early each year that money printing will finally work, that GDP growth will hit “escape velocity.” But this year, the markdowns are fast and furious.
The spurious argument that the taxpayer should pay so that Boeing could increase its profit from $5.25 per share to $6 per share.