Interesting Article

Considering that CNN is a big government, pro-Obama propaganda machine, it is amazing to hear them say that this stock market rally is a bubble:

http://money.cnn.com/2009/08/11/news/economy/bubbly.fortune/index.htm?cnn=yes

I keep hearing over and over again that money managers are buying stocks solely because they don't want to be left out. They aren't buying because the economy is good or because stocks are earning solid returns. P/E ratios are at all-time highs -- 160. Historical average is about 18! What will happen when reality finally comes? That will be one very big bursting bubble!

Apparently, we've learned nothing through this crisis. We're just doing the same things that brought it all on. Last week, I saw some TV ads offering mortgages with NO down payment, NO documentation loans. They call them "liar loans" for good reason. Who but the government would do something like that? NO serious investor would loan money under those conditions!

New statistics: 30% of all homes in America have mortgages that are MORE than the value of the homes. Mortgage Bankers Assoc. study predicting that by 2011, 48% of all loans on homes will be MORE than the value of the house they secure!

Our government is very good at blowing bubbles. They devastation they cause when they pop is breath-taking! Probably the biggest bubble of all -- the Mother of all Bubbles -- is U.S. government debt. When that one pops, it will be the POP heard round the world!

Last Thursday, Fannie Mae went back to the taxpayer trough. They went to the Treasury for another bailout. It hardly made the news!

The Founders must be turning over in their graves!

Steve