An Epic Short Squeeze: ‘Occupy Wall Street’ Is Back; But Their Victory May Be Short Lived.
Share
Share
“Never short a trend.” Michael Sheimo (# 10 in my “List of 15 Nevers”, p. 218, “Maxims of Wall Street”)
Many analysts, including yours truly, believe the Fed’s low-interest rate policy has created a bubble on Wall Street.
Government spending is out of control (the national debt is approaching $28 trillion and rising fast). Meanwhile, the Federal Reserve has pushed interest rates down to almost zero again.
The money supply (M2) rose 26% last year, its fastest rate in a hundred years. But,
Ludwig von Mises, the great Austrian economist, warned that easy money is not neutral. It creates an artificial boom, a bubble economy and potential chaos on Wall Street.