Even after its recent decline, the U.S. equity market does not look especially “cheap” or “undervalued” when viewed over time; the bear market has simply brought valuations back into line with long-term trends.
The Great Debate
Banks in the U.S. face a new source of write-downs and failures in the coming year as loans made to developers to finance residential and commercial property development rapidly go bad.
The foreplay to next month’s G20 summit is degenerating into a buck-passing exercise rather than crafting a Grand Bargain to save the world economy and regulate capitalism.
The commodity boom and bust in the last 5 years suggests there is a natural limit on how much investment money these markets can absorb before price-setting mechanisms become distorted and prices unmoored from supply and demand fundamentals.
from The Great Debate UK:
- Sam Cook is the director of the PeaceWomen Project – a project of the Women’s International League for Peace and Freedom – the world’s oldest women’s peace organization founded in 1915 in the Hague. WILPF is an international non-governmental organization with national sections in 35 countries, covering all continents. Its international secretariat is based in Geneva with a New York United Nations office. The opinions expressed are her own. -
Rather than vainly trying to refloat the shadow banking system, the U.S. would be better off grappling with the inevitable ultimate solution — debt destruction and inflation.