We’re at Peak Insanity
During my 40-year Wall St career, I’ve never seen a mania like this. The problem is that central banks are rogue hedge funds with printing presses who are not elected or accountable and make policies that are consistently wrong.
US stock markets were rocked last week by massive volatility that saw the most significant declines since the March correction. The US Congress and Federal Reserve policy of endless bailouts, moral hazard and exponential money printing are extreme fiscal profligacy that will sink capitalism faster than the Titanic on its maiden voyage.
Stock market indexes have recently rocketed to record highs. The NASDAQ traded up at 12,050.46, and the Standard & Poor’s 500 index traded at 3,588.11, achieving another benchmark. Stock valuations are the highest they’ve ever been, exceeding the crash of 1929 and the 2000 technology bubble. Just six stocks have driven this rally: Apple, Amazon, Microsoft, Facebook, Google and Tesla.
Should you worry that the world has never witnessed a stock mania that has seen valuations skyrocket during the worst economic depression the world has ever experienced? Yes, indeed, you should step back from the cliff’s edge immediately.
The billionaire oligarchs of Silicon Valley, whose stocks are at all-time highs during an economic depression, will utilize censorship to manipulate the outcome of the 2020 election. These oligarchs demand one rule for thee and another for me. They demand equality of outcome and will implement laws that prevent equality of opportunity. The US is in a class war dressed up as a race war. Google, Facebook, Amazon and Twitter are “all in” on ensuring their power base is protected with the election of Biden and Harris.
— Planet Ponzi (@PlanetPonzi) September 2, 2020
Financial media’s illiteracy is compounded by the army of analysts repeating nauseatingly insane sound bites such as: “Don’t fight the Fed and Central Bank Policies,”“You don’t understand, you’re a dinosaur,” and their power punch, “It’s different this time.”
Most sincere apologies, but it’s “not different this time”, next time or anytime – ever! Mean reversion is a “thing” and to quote the head of the Bank of Japan, who based his country’s failed monetary policy on Peter Pan, “You can fly if you believe you can; the problems begin when you stop believing you can fly.” Are we at that point in markets now?
No one can pick the moment of peak insanity during a period of extreme, irrational exuberance. However, during my 40-year career, I have never seen a mania like this before. The Problem: Central banks are rogue hedge
Article from LewRockwell