What is with the headlines about renewed European "fears". I guess the banks aren't happy with the money the ECB printed for them. The fact that we are in a recession which no one wants to admit even though our GDP went negative last quarter shouldn't deter anyone from buying stocks at 5 year highs. I'm sure central bankers will print up whatever the banks want so they can keep gambling in the markets. Surely this can't be another bubble created by central bank liquidity, can it? The fact that none of the money has gone to lending to the public has nothing to do with the lack of demand for goods, right?
Everyone thinks bank stocks are a buy, sure they are considering their cost of capital is zero. They pay no interest on deposits and pay nothing to borrow from their central banks. Who else can borrow for zero? go to a bank and ask how much the interest is on a business loan, it is 10%. credit cards are 12% at best, most are higher. Try getting a mortgage, good luck. All this money printing has only benefited the banks and wealthy, well connected investors. more and more people are driven in to poverty every day, millions have given up looking for work, they no longer count as unemployed.
We are going downhill fast, the prosperity on Wall Street has not translated to prosperity on Main Street. Sooner or later this bubble is going to burst, mind you we have twice the national debt we had in 2007, lots of paper floating around out there, who is going to cash sellers out one day? One thing is for sure, Wall Street has no intention of letting a dime trickle down, the Fed's policies are a failure, nothing more than a bailout for banks. You can not print your way to prosperity, there is no end demand for anything including stocks.
Europe is a mess and so is the US. We do nothing to solve the real issues which are overspending and speculation by our banks. Everything is a short term, kick the can type of fix but the problems keep growing. now we face a crisis every few months, soon it will be weeks, then days before it all collapses.
Welcome to he sham called capitalism. They raise the issue or dump the issue based on how they want to manipulate and grab money. This whole capitalism is so bankrupt, it thrives on stealing! what a sham!