Maybe, it just may be the total collapse in credibility and trust in the US Federal Reserve and Treasury. I mean, come on. Have you heard the bullsh1t that they spouted this morning? Quick Bloomberg scan:
Yellen Says Unclear If Use of Rates Can Stem Leverage (Update1) ...
... Fed Chairman Ben S. Bernanke said yesterday it's "not obvious" there's a bubble in the US and Yellen said today the US stock market is not overvalued....
- 2009-11-17Kohn Says US Asset Prices Don't Seem 'Out of Line' (Update1) ...
... low interest rates don't appear to be fueling another asset-price bubble in US ... Kohn's remarks echoed comments made by Fed Chairman Ben S. Bernanke in an ...
- 2009-11-17Bernanke Says 'Not Obvious' Asset Prices Misaligned (Update2) ...
... regulatory methods to restrain undue risk-taking and to make sure the system is resilient in case an asset-price bubble bursts in the future," Bernanke said.
I would love to see Bernanke's personal investment accounts, just to note how many long bonds and equities he is piling into over the last few months. Yeah, price misalignent is "not obvious", equity market is not over priced, there is no bubble. They are right, the market is not over priced, it is priced for idiots, fools and the follow me crowd. I remember when Bank of America (the company that just bought the two largest, and the two sickest financial entities around at that time - Countrywide and Merrill Lynch, with no government subsidy on Countrywide) announced the price of a follow on equity offering at about $12 and its share price shot up to around $14 or so (going from memory, so don't hold me to the penny). You know things are bad when the company's own CEO says he doesn't know why the hell his stock is shooting up. For those who are not financial types, all anybody who wanted to buy $14 BAC stock had to do was to purchase it $12 directly from the underwriter. Whoever it was that was buying the stock was "literally" throwing the money away!
