Article Image
News Link • Future Predictions

Housing Bubble 2.0: Here’s Why

•, By David Stockman
  That is, our rogue central bank enables speculators and gamblers to amass huge asset positions while paying virtually nothing for the short-term borrowings used to carry them. Its like making cars with zero-cost steel, tires, batteries, electronics and paints. (See “Yellenomics: The Folly of Free Money”)

This rigged equation is supposed to produce “wealth effects” and thereby trick the masses into spending more today on the theory that they can live off fattened IRA-stock accounts tomorrow. Alas, after three devastating bubble collapses this century—dotcom, housing, and the 2008-09 stock bust—-the unwashed aren’t taking the Fed’s bait.

So the only “wealth effect” going on is that the central banking branch of the state is deploying its vast powers to print money and levitate asset prices to help the rich get richer. After all, the top 1% own more that 40% of financial assets and the top 10% own close to four-fifths.

Join us on our Social Networks:


Share this page with your friends on your favorite social network: