Bubbles Burst

Is the NASDAQ another bubble? (Want to ride the roller coaster? Clink here.)

Of course, it’s a bubble–even if it’s not ready to pop–but it’s not just the NASDAQ. There’s no fundamental reason for stocks to be breaking records. The economy at best stumbles along.

So why are all the indexs up? Supply and demand. (I aced college economics even if the Smart Guys in Washington didn’t.)

The Fed has been flooding the economy with new money for most of this decade. But it doesn’t come to you or me, it goes to the banks. Where are they putting it? In bonds underwritten by stocks, bonds and commodities.

China has a stock bubble going, too. When they both burst, each country will blame the other. Just as the democrats and Republicans blame each other for everything.

Everything on Wall Street is up (except oil because that supply is burgeoning), and precious little of it trickles down to Main Street

The Fed created this bubble. Bubbles eventually burst.

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Effective Campaigning

In the last two days before the recent primary election, we received a half dozen robot calls featuring recording of Eric Cantor and his famous supporters … and one call from a real person, someone we know urging us to vote for Cantor’s opponent, Dr. Dave Brat. Which do you think is more effective campaigning?

Similarly before the 2012 Presidential election we received dozens of Republican robo-calls but only a Democrat neighbor came to our door. Which do you think is more effective campaigning?

Big money, big names, even big organizations do not trump grass roots support.