Even in this recovery with near zero Fed Funds, job growth was weak and wage growth never materialized.
What will the next recovery look like?
Post Bubble Yields: U.S. 10 Year(Post-2000) vs Japan (Post-1989)
click for huge chart
Charts courtesy of JDC
The stimulation for the next recovery might be even more limited, given the extremes in current leverage and rates. If we follow the Japanese model, stocks could go down for several years, bonds go up even further, as the dollar rallies, materials and energy stocks do poorly. In this scenario, Gold diverges from the dollar and rallies strongly.
Quote of the Day
The greatest booms unfold when capital concentrates in one sector. When that capital shifts, you also find the result of the greatest financial panics in history.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.