GROWTH at ANY COST?
Why must there be growth at any and every cost? Isn’t a little shrinkage what is in order?
If the Central Bankers finally get smart, they will not do one thing to “save” the markets. More liquidity-based stimulus cannot stop the realization that actual solvency is the problem and that all the liquidity in the world cannot stem a one way markets to the downside.
If the market is to crash 10% this week there is nothing that can stop it. And Biz-TV wants you to “be prepared”. Fuck you very much for the timely advice.
Every time I’ve said the words “Bank Run in Europe”, I would get that look. Those of you who read me regularly are ready for this. Your exposure is minimal. You’ve known this was coming.
I had thought it would come late last year but the marketplace bought one more Bullshit stimulus-induced, “Europe is Saved” rally. So my timing was a tad off. But the result is the same nonetheless.
All the most histrionic and bearish pronouncements made over the past few months are being parroted by the press. Now everyone knows the truth and its time to be ready for the next move.
The answer is simple. What must fail must fail. Prices that belong lower must go lower. There can be no “propping up of asset prices”. Sure, it will be tough for the wealth of the world and most certainly will trickle down. But there can be no new start without a return to reality.
3 Responses to GROWTH at ANY COST?
Scott, yes you did predict this but you where way too early. We don’t make money that way on wall street. It is as never bad as it is or as good as it looks. Of 100 people you know how many are unemployed. I know none that we unemployed on all my relatives and friends. You and the media always hype this stuff up and nothing happens like the way the market will be up tommorow.
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Scott, what makes you think this time is different? That is a very dangerous phrase to use in the market.
I understand being cautious right now and for the past month or two. But to think there wont be a bailout, or there wont be an aggressive attempt to save the status quo seems a little over the top.
Besides, bailouts have been wildly profitable for the government when they are paid back with interest. And the government doesn’t even have to explain where the money goes when it’s paid back. If it worked once, I assume most people in power think it will work again. Obama is on record regarding JPM stating “if it was any worse, we may have had to step in.” What could “stepping in” possibly mean?
It’s the easy way out and politicians ALWAYS take the easy way out.
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Everything’s too broken to take seriously. I agree 90% with your good bloggings over the past several months. I’m not “crash nostalgic” I just think bigger issues await and are here. I’m all cash and have no problem waiting some years if that’s what is required. Thanks for holding to your perspective.
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