Crumbling Cornerstones of Middle Class Wealth

It doesn’t seem like the ’30s…yet. Ask the man on the street and he will tell you what he’s heard on TV: the worst of the crisis is over.

According to Bloomberg: “Wall Street’s largest bond-trading firms say the worst may be over for investors in Treasuries after government securities posted their biggest first-half losses in at least three decades.

“The 16 primary dealers, which trade directly with the Federal Reserve and are obligated to bid at Treasury auctions, forecast the benchmark 10-year note yield will finish the year little changed at 3.58 percent, after rising from 2.21 percent at the end of 2008, according to a survey by Bloomberg News.”

Stocks will keep going up until 2010, says money manager John Dorfman. The “crisis management” phase is behind us, says Jeff Immelt.

But this only reminds us of…1930. Let us wake up the ghosts just so we can laugh at them:

To paraphrase Al Jolson, "You ain't seen nothin' yet!" Bill Bonner disagrees with the media prognosticators.