Everyone knew that the hyper-liquidity House of Cards would become unstable sooner or later.
Everyone knew that the Chinese Economy was a Freak of Nature that was supporting another Freak of Nature....namely, the US economy...
BUT IS THIS THE "BIG ONE...?"
THE GREAT UNRAVELING, THE GREAT DISEQUILIBRIUM, SO OFTEN PREDICTED?
WELL, AS LONG AS THE BOND MARKET IS STABILIZED...THE REST SHOULD TAKE CARE OF ITSELF...
IF A BANK OR HEDGE FUND FAILS...THERE COULD BE MOMENTS WHEN CONFIDENCE IS SHAKEN... BUT MY HUNCH IS THAT WE WILL BE HEARING FROM THE FED SOON...
THE PROBLEM IS THAT HYPER-LIQUIDITY CAN NOT BE "CURED" BY MORE LIQUIDITY...
THE PRODUCTIVE SECTORS ARE OVER-PRODUCTIVE....AND DECADES OF ASSET INFLATION IS STARTING TO WAG THE DOG...
SO JUST GIVING THE RICH MORE MONEY WILL NOT STOP WHATS COMING...SINCE THE PROBLEM WAS CAUSED BY GIVING TOO MUCH MONEY TO THE RICH!!
SOMETIMES YOU SIMPLY HAVE TO GO BACK TO THE BASICS;
AND FIND NEW POINTS OF EQUILIBRIUM BEFORE YOU CAN GO FORWARD AGAIN... THIS COULD BE 1931 ALL OVER AGAIN...
