The Financial Bubble 2012
Like during the Internet Bubble in 2000, now giant banks are most likely to crash, but first, before the crash of the Financial Bubble in America and Europe, the FED and the ECB are going to do everything to avoid the crash of the Financial Bubble, just by printing more, more and more money.
I worried.
Concerned about the future (financial) being of a huge group of ignorant citizens.
Again and again I find in my city that people realize that there is an economic and financial crisis going on, yet think that it all will be ok.
And not only ignorant citizens.
I taste too much indifference, because of the economic, financial and social disaster created by our politicians and central bankers the FED and the ECB.
See how the fact that the ECB just printed € 1,000 billion for the banks, and that this news was uncritically received by the media.
My opinion is that the ECB will print € 1,000 billion more money in May or June 2012, and the FED will do the same, because the 2012 presidential elections very soon, because Obama cannot afford a crash of the Financial Bubble in America and Europe, so the FED and the ECB are going to do everything to avoid the crash of the Financial Bubble before the 2012 presidential elections, just by printing more, more and more € $ billions for the banks.
No man who seems to wonder what for economic, financial and social consequences this has.
Central banks are hazardous to our financial health.
But that doesn't seem to thwart the efforts of central banks.
Short-term gain is masking long-term pain, insofar as central bank policy consequences are concerned.
So rather than get into the details of why central bank policy is hollowing out underlying economies, let's just worry about The Short-Term Consequences.
Fed Chairman Ben Bernanke's comments early this week drove risk appetite higher. But in comments a few weeks prior, his lack of clarity on the subject of quantitative easing made some (me included) assume that the Federal Reserve would be sitting on its hands for a while to see how things in the economy played out.
One of three things could explain this flip-flop policy:
Bernanke is worried the economy is set to lose its recovery momentum,
Bernanke is worried the markets are set to lose their QE momentum, or
Bernanke is worried the government is set to lose its borrowing momentum.
Let's focus on the first two, because Bad News for the Economy Has Meant Good News for Markets.
So if the economy loses its recovery momentum and the Fed steps back in, is more QE an overall bullish force for the markets?
Or if the economy doesn't lose its recovery momentum and jobs are not qualified as being in structural decline and the Fed doesn't feel the need to step back in, is economic recovery still an overall bullish force for the markets?