Assets

Are we all still comfortable about asset values?
Really?
Because this economy isn't going anywhere. And you can forget consumer spending. Unless you sell stuff bankers buy with bonuses. Because the man in the street isn't doing too good cash-wise and I am sure no one really wants a credit boom right now with no guarantees that home equity will do anything other than shrink.
And Bozo - in the process of home buying - is not talking his book!!!
Back in 2008 january ish you will find a Bozo Blog that says it won't be safe to buy assets until 2011. Well here I am believing my own predictions!
But doesn't anyone else feel there is an element of doubt?
The equity markets have been buoyant based on nothing more substantial than the fact that cash is too cheap. Remind anyone of 2006?

And if you are wondering about the impact of a US government shutdown. Well you can forget IPOs. And for the consumer confidence impact dig out episode called "shutdown" from series 5 of The West Wing.
Without even mentioning the growing cost of the failed experiment to politically force a single currency before actual economic convergence (and then allow fiscal independence!)

Let's get our perspective straight. This isn't about doom and gloom and disaster and meltdown. Its about the fact that the news overall is on the poor side of mediocre with some real risk of actual bad news. Nothing to warrant the current buoyant joyfulness of the equity and credit markets.
Now the market was able to shrug off a lot of negative indicators in 2007 before reality set in. And the major collapse of 2008 lagged way behind the signs.
Have we really got memories that short?
Well when I saw "we" I do of course mean "they". The ones with the bonuses.
The big question is: "how often can you play the 'I'm stupid not dishonest' card and keep your job and stay out of jail?"

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