Monday, November 2, 2009

Market Cycles vs Bernanke detrimental stimulus

Bernanke greenshoot at long term winter cycle: after creating economic disaster using bubbles and crashes during Greenspan and Bernanke era, the Fed Bernanke is still in delusion that survived Americans can spend to replace the billions and trillions stimulus so that they can profit from the American spending. Regardless, the Fed will profit from the mismanaged economic cycle using the Treasury through market hype as we can see Goldman high bonuses for example and 60%+ market since the Fed Bernanke appeared on the 60 min.

Markets and economy needs to go through market cycles without artificial manipulation to create enormous profit for a few hands as we have seen especially during Greenspan era when he bubbled up financial markets to attract American saving accounts with a purpose of crash profit in later 1990s; then, another housing bubble and crash to do the same.

The deteriorating wealth cycle will be endless as the economic and monetary policies will continue to consume and to indirectly steal using national debt.

Stimulus is like drugs which need increasingly more dosage which will eventually kill patience. Like natural cycles, markets and economy must go through cycles without extreme manipulation as we have seen during the last few decades in order to sustain better balanced longevity of economics and financial markets.

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