Submitted by Tyler Durden on 06/27/2011 21:36 -0400
* Ben Bernanke
* Consumer Credit
* David Rosenberg
* Fannie Mae
* Freddie Mac
* Ginnie Mae
* Gluskin Sheff
* Housing Market
* Lennar
* Market Conditions
* recovery
* Rosenberg
* Saks
There is little if anything that can be added to the latest commentary from the original skeptic.
Indeed, this 2009-2011 recovery and cyclical bull market has been as artificial as the 2003-07 expansion. That last one was fuelled by financial engineering in the financial sector. This one is being underpinned by unprecedented government intrusion in the credit markets. As of this quarter, your government has replaced the private sector as the largest source of outstanding mortgage market and consumer-related credit (see front page of the Investor's Business Daily). So not only is the U.S.A. turning Japanese in many respects, it is also now resembling China where the government also redirects the flow of private sector credit.
When we said capitalism went on a sabbatical three years ago, we didn't expect this to be a permanent vacation. In the past five years,
http://www.zerohedge.com/article/how-capitalism-went-brief-sabbatical-which-became-permanent-vacation-rosenberg-explains-arti?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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