Return of the Bubble? American Economics 2011, Lessons Not Learned
A small section of the economy seems to have recovered from the economic crisis of 2008. Wall Street has come roaring back and in general those that caused the crisis have been bailed out and are doing qute well these days. But are we not just reinflating another bubble? Which will make a few people a lot of money as the bubble rises but will wipeout far more people once the bubble pop. We’ve seen this happen time and again over the past thirty years.
I’ve been reading a new book by Rolling Stone writer Matt Tiabbi called Griftopia. He has written extensively on the 2008 crisis and his new book kind of explains what happened to cause the crisis and is well worth reading. In todays post we take a look at a Huffington Post story about what is happening on Wall Street.
Wall Street’s ‘Buy Everything’ Sentiment Continues
“Angela Moon, New York – Investors will continue to ride the speediest rally in U.S. stocks since the Great Depression despite growing concerns that the market is overbought and due for a correction.
Wall Street posted its third consecutive week of gains with the S&P 500 now up 6.8 percent for the year and more than 20 percent in just six months.
“I’ve never seen a market like this,” said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont, a market watcher for 35 years.
“I’m showing, by every technical and quantitative standard I have, this market is at extreme levels. But no matter where we start out in the morning, buyers come in.”
Our second post is a clip called “Why Isn’t Wall Street In Jail”with the aforementioned Matt Tiabbi appearing in a Young Turks segment that questions the lack of prosecutions stemming out of the economic meltdown. With the exception of Bernie Madoff who commited the sin of ripping off the wealthy.