Martin Feldstein, a professor of economics at Harvard University, talks about the impact of Federal Reserve monetary policy on the stock market. Feldstein, speaking on Bloomberg Television’s “InsideTrack,” also discusses the outlook for the U.S. economy.
“We are not doing very well. The economy is just coming along at a snail’s pace. The first quarter numbers that we just got last week were not very good at all. The GDP number was 2.2%. That was a disappointment, but you know, it was all automobiles. 1.6 out of the 2.2 was motor vehicle production. So, people were catching up after not being able to buy them the year before. So, this is a very weak economy. The payroll employment numbers, we are going to get some new ones in April. Let’s hope they are better than March where it fell by half. The stock market is, I think, responding to the Fed. I think the real danger is that this is a bubble in the stock market created by low long-term interest rates that the Fed has engineered.” Here is a direct link.
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Isn’t MF the one who proclaimed we were in recession ONE YEAR AFTER it began, and proclaimed it was over a ‘tad bit too soon’? Makes one wonder.
The key takeway is the snail pace economy also has a rapidly-aging boomer population astericked right behind it. All those homes the boomers need to sell (price crash ahead?) All those 401-K’s waiting like sitting ducks at a carnival side show. Hmmm…..and we all got our real estate tax bills, and it ain’t very pretty. Lots of my neighbors had trouble sleeping last night.
I was at the toy store today looking at Rubicons…..”Slick” was flying high…said he sold 8 units last month …..a record…..wow I said….good on ya…what are you going to do with all that dough….not much by the time the wife gets through with me…. he said.
So I guess Marty is right.
But hey what about this…
http://www.zerohedge.com/news/scream-worth-119922500
Perf!