Here’s an interesting take on the market. Grim reading but the guy has been right.
Excerpt from the article dated 5/6/04:
By allowing the official overnight federal funds rate to lag well behind the inflation rate, he says, the Federal Reserve made the worst of all possible central bank mistakes. It encouraged as much unproductive speculation in the past year as it did in 1999, when it flooded the world with dollars in anticipation of trouble from the Y2K bug. For this handiwork, he labels the Fed board “worse than the board of Enron” for its obsequious obedience to Chairman Alan Greenspan.
Excerpt from the interview dated 10/23/03:
The way Belkin sees it, we’re “at the end of a liquidity bubble.” Liquidity is analyst-speak for money, particularly dollars that the Federal Reserve prints and pushes into banks in a variety of ways for a variety of economic, political and social purposes. (“When the Fed makes new money, it’s like counterfeiting, only it’s legal,” he quips.) He learned long ago that it made sense to buy into a liquidity bubble while it’s happening, but that you needed to be able to identify its final days and get out a little early.