And what happens if the Fed cuts the financial market’s liquidity off…
And what this means to the rest of us…
So today, Capitalism comes down to the Federal Reserve buying Apple’s bonds at the lowest interest rate possible so they can finance their stock buybacks for basically free to keep the Nasdaq breaking new records…
But they never consider buying credit card debt from the banks to lower real people’s interest rates from 17-25% to maybe 5% or something really economic stimulating.
As for the Nasdaq records wait until Part II. “What happens BEFORE capital gains taxes double next year”. It’s a thriller.
But you can not have a history lesson of the financial markets without the people involved in the revolving door that spins and spins…
The guys who got us to this point by rewarding corruption and malfeasance the last time – you know, they know, you know they know…
Nothing to do with history, I just like this picture…
More important history…
If you do not know what this last chart means, you really need to find out soon if you are invested in the stock market. This one too…
Keeping it really short.
Invest safe,
Michael Bond
PS. Serious investors may be interested in this kind of analysis and discussion…
TSP & Vanguard Smart Investor serves serious and reluctant investors
My free Best TSP Allocation Guide covers the funds you invest in
My Service covers the market, allocations and warnings
Categories: Perspectives, The Smart Bird