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Blood Orgy Of The Central Banker Devils
By way of introduction, allow us to confess that we're not entirely sure what to make of the blood-spattered romp through 80 years of history that you'll read below.
The overarching point - that eventually, the reckless expansion of credit made possible by the equally reckless expansion of central bank balance sheets, will not only end badly for markets, but in fact for society - isn't new. Albert Edwards talks about it all the time. Further, the notion that central bank largesse is enabling ir
Amazing.
Super. This is so true and right where we are now. “The current social contract is mired in the quicksand of global finance. It is being kept alive by the corpulent balance sheets of central banks, who do their government’s bidding so that the politicians do not have to put unpleasant choices in front of their electorates”. Thanks for this post, H.
if the ‘long cycle’ people are correct, and looking at the major market declines in history (nasdaq 2000, djia 1929, nikkei 1989) 75% and greater are numbers we see. most participants in ‘developed’ markets think bad things only happen to the poor countries. all the living memory of ‘problems’ be they oil shocks, high inflation, true civil unrest, is gone….thus the living only think bad things happen in history books. it stems from a desire to believe that bad things cant happen to ‘me’. Im a good person, etc.
75% decline in stoxx 600 and the sp500 would be something people just cant deal with and would mark a multi-gen low from which to rebuild. it would be the death of capital, and the rebirth of labor; as their % of gdp’s reverse direction after more than 50 years.