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Suddenly, a
growing number of commentators are suggesting that the worst is behind us --
in housing, employment, manufacturing,
the auto sector,
the technology
industry, and elsewhere in between.
Aside from the
fact that, historically at least, bursting bubbles have generally been
followed by drawn-out and messy overshoots to the downside (e.g., more
than four years), while genuine bottoms have, historically at
least, gone unrecognized until well after their arrival, I have one
question: why are share prices approaching intermediate term highs at the
same time that bonds yields are hovering near record lows?
(Source:
The Globe and
Mail)
The truth is
that it doesn't make any (economic) sense -- unless, of course, you attribute
the development to unprecedented central bank intervention. In that case, the
notion that things are returning to "normal" would seem to be a complete
crock of sh*t (if you'll pardon my English).
I know -- I'm
just a grumpy old permabear. Grrrr.
Michael J. Panzner
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