Market Morons Finally Forced to Face Reality
Investors have been slower than a tank of turtles swimming in molasses when it comes to grasping reality, but they may be getting the message on inflation and the Fed’s fight ahead at last. That said, one should never underestimate the resolve of people to enshrine their wishes as unholy doctrines in order to continue chasing the phantasms of their greed like drunken gamblers in a smoke-clouded casino. This bear market — now well over a year long — has produced many rallies that were exemplary in demonstrating that unattractive quality of the human condition.
News stories across multiple categories of The Daily Doom last Friday screamed the message of inflation — how the Fed’s fight is far from over and how the rising flames of inflation have just turned the market’s Fed-pivot fantasy to falling ashes and how interest rates are likely to rise higher still and for longer, but especially about how much the stock market hates all of that. And, so, the market began to thrash in those paroxysms that finally hit the mainstream press and has begun to descend from its dreams.
In this article, I’ll capture those realizations in the financial media that showed investors were speculating on ghosts of better times and even that the bottom may be falling out again just as we’ve seen with all past bear rallies. These validate the following statements from The Great Recession Blog pushed recently and throughout last year just as stubbornly as the bets that were placed in the stock market, countering a broad current of writers, investors, analysts and economists and even one or two followers of this blog who said the opposite through a good part of the year:
As with Valentine’s Day, the market opened sharply down today on the news of high producer inflation (which drives consumer inflation because costs get passed along), and it is now trying to reco
Article from LewRockwell
