All Posts Tagged With: "consumer spending"

The Baby Boomers were flying high during the wonder years. They looked forward to higher house prices and rising stock prices. But now, after having suffered an $11 trillion loss in stocks and real estate…

“By an almost 2-to-1 margin Americans believe the economy has worsened rather than improved during the past year, according to a Bloomberg National Poll conducted March 19-22…

Mainstream economists and mainstream financial media tell us that the worst is over…that the ‘recession’ has passed…and that things are getting back to normal.

I would challenge those who fantasize about a consumer-led recovery to describe where the spending money will come from.

According to theory, the markets know more than any single investor, analyst or economist. In theory, the markets know everything there is to know.

Look at it this way, where would your rather put your money…on the brains and integrity of America’s central bankers…or on a dumb metal? We’ll take the metal!

That’s just what happened last year. Only then, it was both a dollar and yen carry trade that led to a rise in Aussie assets. Once the credit crisis set in, the yen carry got dropped and investors fled risk assets and piled right back into the greenback and U.S. Treasuries.