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May 23, 2013

Bubble Dynamics: Greed Effect > Wealth Effect

Vertiginous Stocks “Dear Jack:  Don’t buy a single vote more than is necessary. I’ll be damned if I’m going to pay for a landslide.” —JFK quoting a made-up telegram from his father, Joseph Kennedy, after he first won election to Congress. Here’s a thought:  overdoing the stimulus — and rocketing stocks higher — can backfire, blunting (or worse)...
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