It has been nearly 5 years since the great crash of Lehman Brothers. The US government via the Federal Reserve is trying to prop up the market with a wave of printed money and there are no signs that it is abetting.
It seems to me that the market is really overvalued but at the same time the taper cannot start. The US government is stuck between the proverbial rock and a hard place. They are blowing bubbles but at the same time they can't afford to stop. If you look via the chart, you can see an eerie looking similarity between the 2004-2007 bubble and the one developing now.
At first, i am very very surprised that the Fed did not taper in Q4 2013 but were willing to wait until 1H2014. In the face of such strong economic data, they are still keeping the money printing going strong and no signs of slowing down at all. Why is that? There is absolutely no logic to that movement.
But now we know.
Faked data seems to have bloated the job numbers in 2012 and it happened during the time the US election is happening. Now it makes sense. If the job data is not as strong as it is reported, the Fed would of course keep the money printing machine going!
It basically means that all the profit, all the EPS increases and what not are actually the product of the free money that is being printed around.
And the best part is Japan is coming on stream and joining the party!
my best prediction is that the government loses control of the debt, investors flee en masse to gold and to oil and the market crashes.
oh with it, the property prices of Malaysia, Hong Kong, Singapore and to a certain degree China.
It seems to me that the market is really overvalued but at the same time the taper cannot start. The US government is stuck between the proverbial rock and a hard place. They are blowing bubbles but at the same time they can't afford to stop. If you look via the chart, you can see an eerie looking similarity between the 2004-2007 bubble and the one developing now.
At first, i am very very surprised that the Fed did not taper in Q4 2013 but were willing to wait until 1H2014. In the face of such strong economic data, they are still keeping the money printing going strong and no signs of slowing down at all. Why is that? There is absolutely no logic to that movement.
But now we know.
Faked data seems to have bloated the job numbers in 2012 and it happened during the time the US election is happening. Now it makes sense. If the job data is not as strong as it is reported, the Fed would of course keep the money printing machine going!
It basically means that all the profit, all the EPS increases and what not are actually the product of the free money that is being printed around.
And the best part is Japan is coming on stream and joining the party!
my best prediction is that the government loses control of the debt, investors flee en masse to gold and to oil and the market crashes.
oh with it, the property prices of Malaysia, Hong Kong, Singapore and to a certain degree China.
