I think that's a good prediction you made about Cardozo devaluing after the election, assuming he wins. As today's sell-off might suggest, maybe the stock market will correct itself in the coming months. Maybe it will get down to "normal" earnings/price ratios after the devaluing chain reaction occurs? But if Greenspan thinks deflation is more of a problem than an inflated stock market, maybe it is. Is it me or did he have a perturbed look on his face at the House Banking Commitee hearings? He probably didn't like having to explain the reasons why Fed bureaucrats had to spend time and tax-payer money - we pay them, right? - saving some rich people's money. What was the main point? Preventing a collapse of the "Goldielocks" economy?
The House Banking Committee chairman Rep. Jim Leach, R-Iowa, said the Fed-led rescue raised "troubling questions of financial concentration and antitrust." And "The bailout may involve a tendency toward concentration that the Justice Department has an obligation to review."
If I was Fed Chairman, I'd bring Sawicky and Proyect with me to a Committee hearing and we'd explain what is really going on, you know, exploitation, class war, etc.
By the way,
"One of the strangest delusions of the Western mind is to the effect that a philosophy of profound wisdom is on tap in the East. I have read a great many expositions of it, some by native sages and the rest by Western enthusiasts, but I have found nothing in it save nonsense. It is, fundamentally, a moony transcendentalism almost as absurd as that of Emerson, Alcott and company. It bears no sort of relation to the known facts, and is full of assumptions and hypotheses that every intelligent man must laugh at. In its practical effects it seems to be as lacking in sense and as inimical to human dignity as Methodism, or even Mormonism..." -H.L.Mencken
sorry, I couldn't resist
-Peter, keeping the powder dry