growing number of commentators are suggesting that the worst is behind us --
in housing, employment, manufacturing,
the auto sector,
industry, and elsewhere in between.
Aside from the
fact that, historically at least, bursting bubbles have generally been
followed by drawn-out and messy overshoots to the downside (e.g., more
than four years), while genuine bottoms have, historically at
least, gone unrecognized until well after their arrival, I have one
question: why are share prices approaching intermediate term highs at the
same time that bonds yields are hovering near record lows?
The Globe and
The truth is
that it doesn't make any (economic) sense -- unless, of course, you attribute
the development to unprecedented central bank intervention. In that case, the
notion that things are returning to "normal" would seem to be a complete
crock of sh*t (if you'll pardon my English).
I know -- I'm
just a grumpy old permabear. Grrrr.
Michael J. Panzner