The economists and media are talking about inflation and deflation. That’s their job….fear and page views. Unfortunately, there is massive inflation and deflation going on at the same time.
We ALL know Bernacke is a failure on top of the failure that was Alan Greenspan. Any academic can order the printing of money with that power. Here is a summary of what the real FED track record is of the last 10 plus years:
Bernanke’s QE II Scorecard
Long-term yields are rising
Banks are not lending
Consumer credit is still dropping
Housing prices hit new all time record lows
Housing starts have hit new all time record lows
Banks are sitting on massive amounts of properties not marked-to market
Commodity prices have soared
Food and energy prices are up substantially
Those on fixed incomes earning nothing on their deposits are getting crushed
The stock market marches higher
Bernanke has taken credit for point number 10. He ignores or denies any role in points 1 through 9.
What the tech industry was doing while Greenspan and Bernacke have ruled was create a ‘Swipe’ and ‘Tap’ Economy. It’s a layer on top of the long-term shitpile and capital reallocation that our government has created.
The biggest public plays on this trend are $aapl (long) $goog $amzn (long) $intu (long) $pay with $v $ma as the boring laggards. With Square, $fbook and hundreds of startups like Venmo, the swipe and tap economy will prevail and accelerate through the cyclical booms and busts that will happen along the way.
As the true retail kingpins of our generation…Amazon and Apple ccontinue to partner with great startups like Square, remember you can prosper from the boom instead of just complaining about the yutz’s in charge.