Close X Cookies are necessary for the proper functioning of By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
In the same category

'We Are Not Doing Very Well'

IMG Auteur
Published : May 03rd, 2012
348 words - Reading time : 0 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...
Category : Crisis Watch





In "NBER's Martin Feldstein Bashes The Deplorable US Economy, Says Bernanke Has Engineered Another Stock Bubble," Zero Hedge highlights some less-than-upbeat commentary from a Bloomberg TV interview with economist Martin Feldstein:

Feldstein on the U.S. economy:

"We are not doing very well. The economy is just coming along at a snail's pace. The first quarter numbers that we just got last week were not very good at all. The GDP number was 2.2%. That was a disappointment, but you know, it was all automobiles. 1.6 out of the 2.2 was motor vehicle production. So, people were catching up after not being able to buy them the year before. So, this is a very weak economy. The payroll employment numbers, we are going to get some new ones in April. Let's hope they are better than March where it fell by half. The stock market is, I think, responding to the Fed. I think the real danger is that this is a bubble in the stock market created by low long-term interest rates that the Fed has engineered."

On the danger of a bubble in the stock market:

"The danger is, like all bubbles, they burst at some point. Remember, Ben Bernanke told us in the summer of 2010 that he was going to do QE2 and then ultimately they did Operation Twist. The purpose of that was to make long-term bonds less attractive so that investors would buy into the stock market. That would raise wealth and higher wealth would lead to more consumption. It helped in the fourth quarter of 2010 and maybe that is what is helping to drive consumption during the first quarter of this year. But the danger is you get a market that is not with the reality of what is happening in the economy, which is, as I said a moment ago, is really not very good at all."

I'll be danged -- another economist (see: "No Punches Pulled") who is not afraid to speak the truth.

If this keeps up, you won't need little old me any more.

Michael J. Panzner 


<< Previous article
Rate : Average :5 (1 vote)
>> Next article
Michael J. Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes, published by Kaplan Publishing.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
06 OctS W.
Good Call. I am saying the same on nearly all his articles. To wit, he has been and remains totally wrong about the PM's for years.
05 Octovertheedge1
"To wit, the “sixth sigma” similarity of Tuesday, Wednesday and Thursday’s silver and “Dow Jones Propaganda Average” charts." When you tro...
Not Enough Gold To Pay All Holde...
03 OctDirk
Have a look at this
Another Case of Market Manipulat...
02 OctDirk
I have studied manipulation by central banks and cannot find any strong evidence that there is manipulation.
Gold and Silver Update
29 Sepjustatrader
Hi Florian, good analysis. But don't you think have a stop at 1120 would be detrimental to the longer term upside bias? It is a great level of supp...
Congress and the Fed Refuse to L...
29 Sepsonora691
Great idea!! Audit the Fed, and while we're at it, let's get someone to audit the gold vaults in Fort Knox and at the Federal Reserve's gold storag...
In Defense of Gold
29 Sepsonora69-1
In 1933, President Roosevelt outlawed the ownership or possession of monetary gold by any US individual, partnership, association or corp...
29 Sepsonora69
In 1933, President Roosevelt outlawed the ownership or possession of monetary gold by any US individual, partnership, association or corp...
Most commented articlesFavoritesMore...
World PM Newsflow
Comments closed