Friday, January 18, 2013

VIDEO: Bond Bubble Will Be Bigger Catastrophe than Real Estate Bust: Doug Casey



Weak hiring is restraining U.S. growth and the economy has grown at a “modest” or “moderate” pace since November. These were a few of the conditions reported in the Federal Reserve’s Beige Book Wednesday. And as The Wall Street Journal notes, it’s a story that is largely in “in line with how the economy has performed for much of the last two years” and the “latest sign that economic growth remains subdued overall.”

Yet take a look at the stock market and it tells a different story.

The S&P 500 (^GSPC) ended 2012 up 12%, while Barron’s (citing mutual-fund watcher Lipper) reports that the week ended Jan. 9 saw the fourth biggest weekly cash flow into equity funds in 20 years. As Barron’s columnist Brendan Conway notes: “The plaint about individual investors’ ‘cash on the sideles’: Maybe it’s finally going to retire.”

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