Banks aren't lending... so there is no real bubbles forming as they did before. And this completely invalidates the Austrian's claims that cheap money and interest rate manipulation by the Fed causes bubbles. If that were true, money has never been cheaper than it is now, and the banks are holding on to it like ninjas. Banks are the problem... and since they took one on the chin in this last debacle, they are going to be little bitches now!!
Tend to agree (but hope we're wrong). In all likelihood another U.S. downgrade is coming (unless of course you have faith in this super committee coming up with some sort of viable plan...and if you do, let me tell you about some swamp land I'm selling). Unemployment stuck at 9.1% and average work week stuck at slightly higher than 34 doesn't exactly bode well for additional jobs being created. Most of the earning reports are more about cutting expenses than they are about increased revenues. I think most people feel that things are pretty much flat with not much improvement coming for quite some time.
