They both excel with the help of performance enhancing drugs. The NYSE is approaching an all time high even as the Europe falls into recession and America’s economic fundamentals are weak. It is high as a kite. As in the case of Armstrong, however, the equity markets can’t dope forever.
The best indication that the Fed’s bond-buying purchases are pushing stocks up artificially is that investors run for cover whenever there is a hint that the Fed might change course, as happened recently. On Monday, billionaire superinvestor Berkshire Hathaway CEO Warren Buffett told CNBC that markets are on a “hair trigger” waiting for signs of change from the Fed. The market is “hooked on the drug” of easy money, Dallas Fed President Richard Fisher told Reuters.
Fisher’s comparison of Fed policies to a drug is apt. Markets might not like the idea of the drug being withdrawn now, when the Fed holds a portfolio of $3 trillion. But the withdrawal symptoms will be a lot worse once the portfolio grows to $4 trillion, or more.
Withdrawal is going to be painful.
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Market Watch 3/6/2013 10 most disreputable businesses in the USA:
1.AIG
2.Goldman Sachs
3.Halliburton
4.American Airlines (AMR)
5.Bank of America
6.CitiBank (CitiGroup, Inc.)
7.BP – British Petroleum
8. JP Morgan Chase & Co.
9.Wells Fargo
10.Comcast
Note: of the 2007/08 participants in America’s real estate debacle, 6 are here represented as the most disreputable. All 6 remaining participants in America’s Real Estate collapse (others filed for bankruptcy)are in the financial sector, receiving huge “subsidies” from The White House.
Alot of talk from NYSE “pro’s” mention – stock valuations. A little known accounting flim-flammery has taken place, distorting completely every business enterprises financial reporting. Especially large corporations having overseas operations. Since 56% of America’s productive capacity is now “outsourced,” smoke-and-mirrors are the new normal for stock valuations…a blend of IAS (America’s old accounting standards) and newly invented IFRS (European accounting standards). Now, anyones stock portfolio is a very sure “crap shoot.”Pray. Amen.
I sold all the stock I was able to two weeks ago. I was looking at something that I couldn’t deny.
http://i.imgur.com/59h99So.jpg