Loading ...Yes its growing since gold backing was removed from the US Dollar in 1971. The Fed is running out of rabbits to pull out of their hat. I remember back then. An 18% mortgage on a $40 k house $7200 interest first year is ok. But what about a 7% mtg on a $600k house? Isn’t that $42,000 in interest the first year? Plus propert taxes. Thats why the commie banker bozos pushed rates all the way down. Screw the saver, reward the borrower. Reward the US Bond buyer lending money to US Gov’t Dracula in charge of the blood bank.
Its all in reverse. Cheap labor and materials, cheap rates etc. And all the outsourcing? Screw American manufacturing and US production. Screw savers screw precious metals investors. Its all over. Be happy, get pop corn watch the show. LOL
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“Nobody knows what anything is worth, so there’s an enormous number of companies that are dramatically misvalued in ways that we haven’t seen before,” he said.
Indeed, Einhorn cautioned investors against assuming a stock is cheap simply because it’s plunged 60% or 70% in price this year, as it could still be hugely overvalued.
The combination of heady valuations, stubborn inflation, rising interest rates, and large amounts of debt could reveal cracks in the global financial system, Einhorn said.
“The systemic risks have built up in the government bond markets all around the world,” he said, likely nodding to Britain’s ongoing gilt fiasco. “When you have a down cycle is when these things tend to metastasize.”