(Click on the article above)
Congratulations officials…you’ve succeeded in setting up the most dangerous investment climate ever….BRAVO!!!
This confirms my worse fears that this whole recovery in the markets is based on hope and moral hazard (ie the government will always come to the rescue). Sure the economy has been recovering, but the recovery has been extremely lackluster and is VERY vulnerable to ANY negative shock.
At this point, any time you have some government pondering the idea of withdrawing support, you’ll get this. It’s happening in the Eurozone and it’s happening here.
But guess what…it may continue…because every day the market goes up, more air is being blown into the bubble and the more painful the crash will be. Officials will do everything in their power to keep it going until there’s some sort of political event that pops the whole damn thing.
Who knows when the whole house of cards comes crashing down, but be assured that it will be riduckoulus. It may be worse than 2008.