I believe that the Last Great Bubble is bursting — faith in central banks to solve all problems.
I have said this before and it is worth repeating. Twenty years ago, I'm fairly sure people said "don't fight the Bank of Japan." Two months ago, you could have said "don't fight the European Central Bank." Now, with the Federal Reserve ending quantitative easing as worldwide economic data falters, it appears the time to "fight the Fed" has come.
I have waited a long time personally for this environment, given that I have largely stood alone on the deflation-pulse thesis for the better part of a year and a half, and have been very public about failed reflation. The pushback was always that I was wrong, that markets were fine, and that equity gains proved it.
http://www.marketwatch.com/story/is-the-last-great-bubble-bursting-2014-10-21?siteid=yhoof2
I have said this before and it is worth repeating. Twenty years ago, I'm fairly sure people said "don't fight the Bank of Japan." Two months ago, you could have said "don't fight the European Central Bank." Now, with the Federal Reserve ending quantitative easing as worldwide economic data falters, it appears the time to "fight the Fed" has come.
I have waited a long time personally for this environment, given that I have largely stood alone on the deflation-pulse thesis for the better part of a year and a half, and have been very public about failed reflation. The pushback was always that I was wrong, that markets were fine, and that equity gains proved it.
http://www.marketwatch.com/story/is-the-last-great-bubble-bursting-2014-10-21?siteid=yhoof2
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