The Fed's QE2 combined with regulators' lack of interest in pursuing justice has reflated the worst part of the housing bubble: its lack of integrity. Mortgage robo-signing continues unabated.
Readers can be forgiven if they must wonder if anything about the world economy is real anymore. Shadow Government Statistics notes that most of the U.S. government's economic figures are untrustworthy but financial pundits cite them anyway to lend authority to their guesswork. Fake European bank stress tests are starting to rattle equity markets, long after I first wondered why investors weren't paying attention. A fake debate over cutting the U.S. budget deficit hasn't stopped foreign bond buyers from throwing their money away just yet. No cuts are coming without a bond market implosion.
Hey folks, I'm just keepin' it real here. That's a hard job.
