Hugo Salinas Price is exactly right – the derivatives bubble is the number one threat that our financial system is facing, and it could potentially bring down a whole bunch of our big banks. But for the moment, Wall Street is still in a euphoric mood. The Dow is near a record high and many investors are hoping that this rally will last for the rest of the year. Unfortunately, I wouldn’t count on that happening. The truth is that the stock market has become completely divorced from economic reality. Since March 2009, the size of the U.S. economy has grown by approximately $1.3 trillion, but stock market wealth has grown by an astounding $12 trillion. And the stock market has just kept on rising even though GDP growth forecasts have been steadily falling. It doesn’t make any sense. But Obama, Bernanke and the wizards on Wall Street assure us that there is no end to the party in sight. Believe them at your own peril. The people at the controls are completely and totally clueless and we are rapidly careening toward disaster. Perhaps we should do what one little town in Minnesota did and put a 4-year-old kid in charge. That kid certainly could not be much worse than our current leadership, don’t you think? This article is brought to you courtesy of Michael Snyder
Posted on: Thu, 08 Aug 2013 02:08:11 +0000
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