Welllllll there is the market fundamentals and then there are things that manipulate/change the market from its baseline. Like trying to suppress the business cycle in 2008 just means it'll come back worse, its just a fact of life.
Its not really manipulation in the sense that some guy is pulling all the strings so much that the rules of the game are changing as the game is concurrently being played and it takes awhile for the market to reach equilibrium.
Housing is still being propped up by lower mortgage rates via QE and operation twist especially. It has the side effect of pushing out the younger generations (pricing them out) of the housing market which is going to be the reckoning felt later. Lots of stuff like that.
Same with 2% auto loans as way more than 2% of auto loans will fail. Just as inflated tuition costs is a direct result of federal loans but considering there is no way to default there is no way for feedback into the student loan system. Its going to go into a positive feedback loop like all the bubbles in the past.
So if we just print the money and monetize our own bonds the predictable result is less trust and respect for the USD which I personally think I observe happening but whatever. The worlds economic center is always its creative and cultural center as well, so all you gotta do is take a peek at how hollywood is doing overseas (generally terrible, movies in general are pretty bad).
All rather inevitable just as inevitable as the baby boomers buying lots of potato chips at age 33.2 as the demographics always say happens. Thats the interesting part is all the boomers who have PAPER gains on the stock market for their retirement, its going to be a rush for the exit once they start to pull that money. Its all really quite inevitable. Derp derp. Better have a plan.
Santelli is a "useful idiot" in that fundamentally nothing he says is really wrong per se, its just the timing is completely wrong and he is overhyping. So do you want to make money or do you want to plan for the future? Two different things. Two different sources for advice. Lots of money is to be made in even late stage bullmarkets. I don't see how what he says is any worse than all these people saying buy Facebook or whatever when the company barely makes any cash. They'll tell you when to buy of course but will neglect to tell you when to sell :awe:
Ride it on the way up but see it coming on the way down. The bull markets are practically a given. Just pay attention to the rate of lending. Once the banks become hesitant to loan in a certain sector its default time!
Facebook
Twitter