What can’t Continue Forever Ultimately Won’t.

I love Doug Kass, almost as much as John Mauldin, they are a couple of market analyzers who bring a perspective that CNBC’s cheerleading approach completely misses. To be fair, the market would have had a lot more trouble making the 2000 and 2007 highs if it had not had the CNBC crowd running the tapes.

But anyway I pulled the title for today’s blog from Kass’s recent piece, and the comment here which I also pulled from his material:  “The Bernanke-led Fed’s enthusiasm for avoiding the mistakes that worsened the Great Depression—- a mistimed tightening of monetary conditions — has led him to repeat the mistakes that caused it in the first place:”  is the crowning statement.

See the complete article here:

http://www.marketwatch.com/story/ghost-of-1929-crash-reappears-2013-12-06

On a further point, an exellent article out yesterday by Binyamin Applelbaum:

http://www.nytimes.com/2013/12/09/business/economy/feds-plan-to-taper-stimulus-effort-not-expected-until-next-year.html?smid=pl-share

Deflation, to me, has been and will continue to be the biggest battle, a battle that the US and Japan have chosen to fight with easy money, rather than doing the hard fiscal work to restructure the economy and build a solid base. 

At least the Volcker rule is being passed.  This and the Affordable Care Act are probably adequate justification to me to feel good about abandoning the Republican Party in 2002 and moving toward a Progressive philosophy.

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