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Simon Property Group Inc. Message Board

  • winsabokk winsabokk Apr 27, 2012 5:40 PM Flag

    Wall Street and Bernanke

    Anybody note the set up for publicly traded homebuilders lately?

    The headlines and analysts saying homebuilding ready to recover.

    It isn't.

    But that gets money flowing to the sector lifting valuations so Wall street can later raise more money to keep the zombies alive.

    This will be the second time for some HB's who have already tapped the markets and done equity and debt offerings over the last couple of years which would have never happened 20 years ago.

    Many should have gone BK making way for new entrants.

    With all these second and third chances, it seems the powers that be don't want to ever see a publicly traded firm fail again!

    So the traditional 'rules' of free market capitalism have changed (for Wall Street).

    But the rules are tougher for Main Street where BK is increasingly common.

    Wall Street has now become a repository of zombyism where the patients are kept on life support long after brain activity has ceased.

    And the institutions and passively traded index and ETF funds funnel more money into unproductive enterprises.

    And the Fed enables it all.

    Anyone looking out for the next generation should be ashamed if they support these misguided policies that steals from savers to support cheaper govt borrowing and WS.

    I remain more convinced than ever that this will all end very badly as policy continues to reinforce moral hazard and policies work to punish success and rewards failure.

    IOW, affirmative action for Wall Street and perhaps symbolic of what's to come WRT the nation's ability to compete.

    Just watch standards of living.


    And you can thank Bernanke and his ilk for that. (A big assist to Obama for his refusal to rein in spending and continue adding to the debt).

    GL to all of you, you're going to need it.

    P.S. Keep in mind physical gold and silver held outside of the banking system is about the only safe insurance that any of us can buy to ensure some preservation of capital if we continue on this path to destruction.

    You just can't keep eating your young and expect a prosperous future and that's exactly what we are seeing.

    Socialist policy for WS and never-ending handouts sucks when no one left to pay the bills.


    Any longs here understand why so many unwilling to start or expand business in America now?

    Bad enough to have to deal with increasing govt regulation and taxes for domestic operations but it seems that a larger share of the economy needs to be siphoned off to feed and subsidize Wall Street now too.

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    • ok so if you think all of this stuff,

      so what,

      the question is,

      HOW DO YOU PROFIT FROM YOUR KNOWLEDGE?

      Short ETF?

    • Well done, the access to capital for homebuilders and others is an absurd distortion of our fascist markets. It is so difficult for a small business to survive and raise money and the fortune 1000 can pilfer all the cash out of these companies and the dysfunctional ETF, indexes, and mutual fund closet indexes just keep pouring more money into this distortion. It is unreal.

 
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