Fantasy About US Recovery Is Not Going To Materialize

Peter Schiff on CNBC Europe (9/12/14)

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Moon Kil Woong 9 years ago Contributor's comment
Nothing new, but a generally accurate assessment of the market. Given the Federal Reserve's commitment to ease until government inflation numbers spike, even if it has no effect but to enrich those it provides liquidity to, I still hold that the market downturn is looking to be next year even though information is showing that even with the extraordinary low rates and socialistic financing of housing through the government and the Federal Reserve who provides liquidity to Fannnie and Freddie buy buying anything they can from them is failing. This behavior has stimulated abstract asset allocation into the stock market, junk bonds, and encouraged even more building in an already saturated property market. The US economy gets further and further off true capitalism's course at every passing day. To reject this fiscal negligence and embrace the means to real economic recuperation gets harder at each passing day. When this will happen is a guess because true capitalism's market signaling has already been undermined and the public has learned to become dependent on government and central bank action just like any socialist country. It is pitiful to watch.