Wall Street has been making great money moving stocks though for the rest of the country, not so much. The recent Wall Street run has been a concern for me because there seems to be very little reality behind the run. As great as a recovery may be, the hype may be too much and of course, you know who is going to get stuck with the next bill if this turns out to be yet another bubble. Is the Fed missing a brewing problem, again? CNNMoney:
But it's clear that bankers are loath to pull back on their support for the financial system before it's clear the economy has staged a stronger recovery. And the Fed has a long and painful history of ignoring asset price inflation.
"The central bankers have this textbook belief that the only inflation is the kind that appears in consumer price indexes," said Simons. "They don't believe what they're doing could cause an asset price bubble."
For now, Fed chief Ben Bernanke and other central bankers can console themselves for now with stable consumer price inflation readings in major economies.
But comparing the bankers with a driver pulled over for speeding for the umpteenth time, Simons said, "At some point, you have to say maybe your speedometer's broken."
