One of the most insightful comments explaining what happened last night, when Bernanke just killed all credibility that the economy may soon be able to stand up on its own two legs, comes from Seth Klarman who crushed the logic (or lack thereof) behind proclaiming any recovery in a world in which the only marginal factor preventing an all out collapse in the stock market and thus economy is, and continues, to be the Federal Reserve which has not only destroyed the market’s discounting function, but with every passing day is taking over both the entire US economy (the Fed’s balance sheet is now 25% of US GDP) and the US bond market (currently in possession of 30% of all 10 Year equivalents).
If the economy is so fragile that the government cannot allow failure, then we are indeed close to collapse
….read much more HERE
It’s Getting Closer – Don’t Say I Didn’t Try To Warn You
If the economy is so fragile that the government cannot allow failure, then we are indeed close to collapse – Seth Klarman, money manager, via Zerohedge (Ed Note: That is the article above)
We’ll know the collapse is coming sooner rather later when CNBC’s viewership plummets to nothing – Dave and Friend of Dave circa mid-2002
That Zerohedge link is worth the quick read. It has been reported over the past couple of weeks that CNBC’s viewership has fallen to all-time lows this year. It’s a trend that’s been ongoing since the economy crapped out in 2007. In fact, the New York Post has reported that Larry “Cocaine Brain” Kudlow’s show – “The Kudlow Report” has been cancelled, citing that viewership in its key demographic, 24 – 50 yr olds – is off 60%.