Mike Larson: More Gridlock, More Fed Insanity and More Economic Stagnation

November 9, 2012

Mike Larson says the elections only gave us more same do-nothing Washington environment that produced the debt ceiling debacle, failed to address our long-term debt and deficit problems, and now threatens to push us over the Fiscal Cliff.

{ 6 comments… read them below or add one }

1 Frances October 26, 2012 at 1:33 pm
What you’re really saying, Boy Blunder, is YOU HAVE TOTALLY missed the “wealth effect’ that you speak of. You have NO UNDERSTANDING of what the Fed is doing….and its not even really about the the current Fed… Its been about the 1 yr and the LIBOR for thelast 5 years and you have oh-so no idea what is going on.. Your clients are as broke and poor as ever becasue of you…AGAIN…YOU ARE DOING TO THEM EXACTLY WHAT YOU SAY YOU WILL PROTECT THME FROm All teh graphs and stats you thorw out PROVE you have missed th boat…

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2 Scott October 28, 2012 at 3:57 pm
Frances, your the idiot who doesn’t have a clue. Isn’t it easy to throw stones without providing any solutions? Exactly HOW is Mike wrong? I still have my money BECAUSE of Mike (and Martin & Co). If I hadn’t taken their advice back in 2004 I’d BROKE. What the hell do YOU have to offer that is so superior to what Mike is telling us? NOTHING. Just vitriol. Your probably a freaking BANKER who knows Mike is calling you and your ilk out. Go climb back under your rock and come again when you have something worthwhile to offer.

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3 Frances October 28, 2012 at 8:48 pm
Who’s spewing vitriol????…there’s a word in the Bible for wek-kneed people like you.. ..but..buckle up clown Funny, your wife seemed to like everything I said and did last weekend… You may HAVE your money but it certainly hasn’t GROWN..why??..because he doesn’t understand what is being telegraphed to him…he has missed the “wealth effect’ he speaks of…and so have you, maestro. You and Mike have missed the biggest bull run in hsstory…and you actually have less omney with the current value of the dollar A couple maroons you two are…complete and utter idiots.. what did I do??..quadruple my money by letting it sit in a mutual fund the last 5 years…A MUTUAL FUND!!!!…. and that’s just one wittle thing…don’t get me started about the tens-of-thousands 15 rentals are briginging in every month.. or??..don’t you understand..REAL ESTATE IS HOT< HOT HOT…what a buffoon..

4 Richard Caliunjian October 30, 2012 at 9:22 am
Not sure this makes a lot of sense. It’s all about the spread. Go give your bank a commercial mortgage and see what the rate is. The spread is 50-100 basis points greater than it was before the Financial Crisis hit.

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5 Alex November 9, 2012 at 9:41 pm
The stock market is rigged by a too easy Fed looking to boost the wealth effect in stocks and the housing market, in hope of getting the real economy going. If the Fed wasn’t pumping up this market, it would be heading to the previous low of 12,035. Given the Fed is putting a bid under the market, strong support for the Dow will be at 12,577/ 12,656. I agree about real estate. I bought a couple of rentals and I’m looking for more. However, I’m cautious and only buying at the right price (a good discount). My fear in the long run is with all this printing of money, rates will start to rise. So not only will the banks not be lending on real estate, but rates will be rising. Given rentals are just about as leveraged as futures, I buy my rentals cheap and I don’t expect capital gains on them. Only income. Personally, I think the best investments are real assets, that are not financed and are necessities. Rentals are real and necessary, but they have that financing component. Food has all three going for it. I like Jim Rogers advice that we should all buy a farm.

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6 Alex November 9, 2012 at 9:51 pm
Mike your economic and fundamental analysis on this video is insightful and very helpful. I think taking the next step and saying the stock or bond market will do this or that is a bit risky. There has been a decoupling with the economic and political fundamentals you speak of and these markets. Let’s face it with GDP at 1.5% and the true inflation rate about 5%, all else equal the Dow would be trading at 9,000 and the 10 year note yielding 6%. The Fed has disconnected the economic/ political fundamentals and those financial markets by literally buying Treasury bonds/ notes and pushing their yields abnormally low and pushing stock yields to extremely low levels too. As long as companies have earnings, with yields near zero, stock prices will remain well bid — Dividends/ Price = Yield.

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