The “permanent Bull market” engineered by the constant intervention of banking and political authorities has a problem: the duration of each cycle is getting shorter.
As we all know, the central banks of the world have decided that in lieu of actual prosperity, they will provide the illusion of prosperity via a “permanent Bull market” in stocks.
I have discredited this “wealth effect” many times, as have others. Since the vast majority of equity and financial assets are held by the top 10% of households in the U.S., then the “wealth effect” only benefits this narrow band of households. Very little trickles down as the newly enriched account for about 40% of all consumer spending–but luxury shopping creates mostly low-paying jobs: clerks in jewelry stores, busboys in fancy restaurants, etc.
So far, so good, as far as the Federal Reserve and the politicos in Washington are concerned; since Wall Street is skimming billions again and big campaign contributors all come from that top 10% slice of the economy, then their pals and supporters are benefitting immensely from the facsimile “prosperity” of a propped-up “permanent Bull market.”
But something is going wrong with the interventionists’ delight: each new run of the “permenent Bull market” is shorter than the last one.
http://www.oftwomind…t-bull3-11.html
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
