I know this comes as a newsflash to most of our readers, but pouring at least $85 billion/month (probably a good deal more) into the economy isn’t a smart thing to do. Bill Gross, manager of more bonds than probably any other private individual in the world believes Bernanke’s grand experiment is holding back “recovery.”
And right now we have a very complicated situation, with some parts of the economy rapidly becoming overheated, while others languish. None of it however constitutes “recovery.”
The real estate around me in suburban Washington DC for instance suddenly feels very bubbly. We went from dead to bubble almost overnight. I haven’t seen anyone try to flip anything yet in my neighborhood but it’s only a matter of time if things continue on as they have been this year, and that is not healthy.
But as we reported earlier it seems that we are now in an era of bubble or depression with nothing in between. There is no “healthy” anymore.
Our economy needs lithium.