Bill Gross of Janus Capital looked into the abyss….
Gross writes: “When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.”
He says this because oil is down to $49 per BBL. Treasury Yields are falling lower. And as of this moment the DJIA is also dropping like rock in a tossed in a fishing pond. This, my five or six constant readers, is just dreadful. It’s more horrible than bad. It sucks like a turbo-molecular pump. Unless, you’re like most of the rest of us and are sick and tired of not being able to afford anything.
Fortunately, energy is getting cheaper. This shows up first in the oil market where the oligopolists cry their tears of overdue woe. But then there is the other side of this trade where RMJ lives. Cheap gas means my family and I can go places and see things. Cheap gas means we can also buy other things. This makes work-a-day shlubs like Your Humble Blogger more confident.
This has had a knock-on effect triggering declines in unemployment, increases in wages*, and a huge boost in GDP. Real human beings believe we are finally turning a corner. So naturally elitist pigs like [mc_name name=’Sen. Elizabeth Warren (D-MA)’ chamber=’senate’ mcid=’W000817′ ] and Stock Analyst Wolf Richter, attempt to prop up the old order by spreading the scare pollution far and wide.
Without the peak oil scares and other such systemically enforced scarcities; how do they keep us on our knees? And really, this is why the current decline in asset prices is such a boon to the average American. It actually makes the lives we want to lead, our American Dream, affordable again. Who other than a Fake Indian Progressive Socialist would have a problem with that?
*-You’d have to be an economic data geek to know the last time that happened in recent history.