There’s No Bottom Until Frenzied Speculation Turns to Dust
Only when speculative sizzle attracts no buyers / marks will the bottom be in.
There hasn’t been a truly organic bottom in stocks in decades. Fifteen years of relentless central bank manipulation since the 2008-09 Global Financial Meltdown has persuaded punters that central banks will always save us should the market turn down because relentless central bank suppression of interest rates and expansion of liquidity (a.k.a. free money for financiers) are now necessary and thus predictably permanent.
Central banks have rescued punters from every market drop. This has pushed moral hazard to near-infinity: since we know the Fed et al. will rescue us, no matter how stupid or venal or risky our bets, then why not increase the leverage, risk and fraud at every turn?
Indeed, why not? With the central banks providing a permanent backstop, it would be foolish not t
Article from LewRockwell