All sorts of good effects from Obama’s policies – from Bloomberg:
The lowest-rated junk bonds are the most expensive corporate debt following a Federal Reserve- induced rally in high-risk assets, adding to concern fixed- income securities are overvalued…
Yeah, no freakin’ kidding. Look, this is what happens when you bail out banks, print a couple trillion dollars and just shovel money through the financial sector: all sorts of BS investments become attractive. If you really want to grasp what is happening here – our Federal Reserve is picking our pockets and handing our money to others…and they are buying junk bond with it!
Mish best describes what is happening:
In fact, the Fed’s policies are helping neither the real nor unreal economies unless you consider creating another opportunity for Goldman Sachs and select hedge funds to short at the opportune time, appropriate “help”.
Boil it down: the banksters and bureaucrats are having a ball, and getting ready to stick us with the bill as they will know when to short everything and get out with their wealth intact.
There never was an easy way out of this – but the longer Obama runs the government, Democrats run the Congress and Bernanke runs the Fed, the worse this will get. Voting Republican in 2010 is not a cure-all, but it is the very best first step we can take to right our financial ship.
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