Quote from Avid_Consumer:
the stock mkt has basically become one conslidated certificate of deposit... for better or worse
personally i say worse, but if the other option is a recession that causes major segments of the leveraged economy to realize some level of potentially contagious insolvency, it's easy to see why the creators and users of liquidity need/prefer it to remain this way.
can you still call it a 'free' market though when the price is mostly liquidity driven vs representing the competetiveness and value of the actual businesses?
i just fail to recognize a point or situation in which the fed/institutions will reverse the liquidity pump as our society is increasingly dependent on it to maintain the status quo. how is it not a one way street to hyperinflation
Yeah, the market is in many ways a fulcrum point for a zillion leveraged strategies that create pressure for the market to do not much of anything.
Check out these headlines from Bloomberg:
"KKR to Acquire First Data for $25.6 Billion in Second-Largest Buyout Ever"
"New Century Files for Bankruptcy as U.S. Subprime-Mortgage Defaults Surge"
Which will have a bigger impact on the markets? Big money liquidity or the inflation, low wage and confidence tribulations of the Great Unwashed?

