Monday, May 09, 2005

The Recovery That Isn't And the Bust That Will

By Mark M. Rostenko

"What is bad is that we’re borrowing in order to consume.
We’re selling our future production in order to consume now.
This is a recipe, THE recipe for financial ruin."

"Arguably when the basis for measurement of the economy’s health is pretty much a fraud, it’s likely that whatever you’ve heard from official sources about the economy as a whole is flawed. The reality is that the Fed’s policies have done very little to create a more dynamic, healthy or productive economy but instead have served primarily to boost asset prices, create new bubbles in housing and credit markets and cause consumers to plunge more deeply into debt.

"Interest rates have been maintained at extremely stimulative levels. All that easy money floating around (money supply has increased by more than five times since the early 80s) has to find its way somewhere. Much of it ends up in the financial and housing markets.../.


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