{"id":14220,"date":"2015-11-07T08:10:34","date_gmt":"2015-11-07T13:10:34","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14220"},"modified":"2015-11-07T08:10:34","modified_gmt":"2015-11-07T13:10:34","slug":"how-the-easy-money-boom-ends","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14220","title":{"rendered":"How the easy money boom ends"},"content":{"rendered":"

How the easy money boom ends<\/a><\/h3>\n

Through the door there came familiar laughter
\nI saw your face and heard you call my name
\nOh, my friend we\u2019re older but no wiser
\nFor in our hearts the dreams are still the same
\nThose were the days<\/p>\n

\u2013 \u201cThose Were the Days\u201d by Gene Raskin<\/p>\n

POITOU, France \u2013 Yes, they were good years\u2026 1980-2015. We laughed. We cried. We got married. We raised children. We bought houses. We made money.Whose life has not been improved since the end of the 1970s?<\/p>\n

Reagan\u2019s \u201cMorning in America.\u201d Then the Clinton Years. Finally, George W. Bush\u2019s \u201cFin de Bubble\u201d era. Who is not older and better off (or at least older) than he was when the era began?<\/p>\n

Should we just stop there, happy to have had such a wonderful time together?<\/p>\n

Today, the Dow opens at 17,867 points \u2013 not far from its all-time high. And about 1,180% higher than it was 35 years ago.<\/p>\n

A man would be fool to question his happiness in marriage; would he be so foolish to wonder about the bliss afforded by such a bull run?<\/p>\n

Should we merely thank divine providence\u2026 or the profane feds\u2026 for our granite countertops, our rising stock market portfolios, our families, and our fortunes?<\/p>\n

Should we look in the closets and under the rug?<\/p>\n

Or maybe \u2013 just maybe \u2013 should we check the balance sheet?<\/p>\n

Vanishing Capital
\nThe press was unanimous as to what happened yesterday: \u201cU.S. Stocks Slip on Yellen\u2019s Testimony.\u201d<\/p>\n

What was it about her testimony that caused investors to think that their stocks may be less valuable at 4 p.m. than they had been at 9 a.m.?<\/p>\n

\u201cYellen hints at December rate hike.\u201d<\/p>\n

Investors are no dopes. They know the fix is in. The value of a stock is no longer determined by honest commerce. Now, it is a feature of finance \u2013 specifically, the rate of interest the Fed pays commercial banks on their excess reserves.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

How the easy money boom ends Through the door there came familiar laughter I saw your face and heard you call my name Oh, my friend we\u2019re older but no wiser For in our hearts the dreams are still the same Those were the days \u2013 \u201cThose Were the Days\u201d by Gene Raskin POITOU, France […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6190,10519,8435,1806,8436,7223,175,195,4896,303,305,10518,534],"class_list":["post-14220","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bill-bonner","tag-bonner-and-partners","tag-boom","tag-bubble","tag-bust","tag-cheap-credit","tag-credit","tag-debt","tag-easy-money","tag-fed","tag-federal-reserve","tag-janet-yelled","tag-monetary-policy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14220"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14220\/revisions"}],"predecessor-version":[{"id":14221,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14220\/revisions\/14221"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}