S&P has wiped out the last 10 years of “growth”

Oct.07, 2008 in Market Outlook

Since the last 10 years were nothing but growth in debt, the market now reflects more closely, the real economy. Unfortunately, our economy is shrinking as defined by the massive continuing outflow of capital. That means that the market slowly continues to decline in real terms till this problem reverses. The effects on the consumer from this return to reality have not been felt but are coming very soon bailout or no bailout.

Somebody’s getting rich and it isn’t the guy next door.

I think a group of people in power are manipulating the market to extract every bit of wealth possible from the various investments the general public has been lured into feeding the past 5 to 7 years. This feels like a targeted attack.

People are distracted by the housing slump and the subsequent credit crunch and are ignoring the fact that value is leaving the market and is not being reinvested. I fear that at the end of all this, we will no longer be in control of The United States.

Will there be another debt bubble with the present fed money injections?
Perhaps, but not for long. Reality has a way of carrying the day.

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