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I just saw a headline on the CNBC website:
Really? All the way into next week?
If you want to know what effect QE II has had on the markets, I think that just about sums it up. There are no investors anymore, only speculators trying to figure out what to hold for the next week. Ben Bernanke has turned us into a nation of gamblers.
The LinkedIn IPO yesterday reminded a lot of people of the dot com bubble but as a resident of Miami, I immediately flashed back to 2005 when "investors" were camping out for a chance to snap up pre-construction condos which they never expected to pay for, much less actually live in. They all thought they would find a greater fool to flip it to long before they had to actually close on the deal. Much too late, they discovered the supply of fools was finite and the last one was in a sleeping bag just a few feet away. If after market buyers of LinkedIn want to find the fool, they just need a mirror.
Ben Bernanke and the other Keynesians believe economic growth is created by raising the "animal spirits" of investors. Well, Ben, mission accomplished. What now?
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