THAT THE EASY MONEY ORGY WAS ALMOST OVER WAS REPEATEDLY SIGNALED BY THE DECLINE OF THE DOLLAR...
NO CENTRAL BANK...ESPECIALLY THE FED...CAN SIT IDLY BY AND LET IT'S CURRENCY COLLAPSE...
AND YES, WHAT HAPPEN TO THE DOLLAR WAS A COLLAPSE... IF YOU CAN'T BUY A CUP OF COFFEE IN PARIS WITHOUT NOTICING THE DOLLAR'S WEAKNESS...?
HOW IN THE HELL CAN YOU BUY MASSIVE QUANTITIES OF US BONDS...OR CORPORATE DEBT WITHOUT BEING KNOCKED FOR A LOOP...?
THIS HAS BEEN GOING ON FOR SOME TIME AND ALL THE WHILE THE MARKETS HAVE BEEN SOARING...
KNOW THIS: WHEN TROUBLE COMES TO WALL STREET...IT' COMES NOT IN THE FORM OF A STOCK BUBBLE... NO, THAT IS MERELY THE SYMPTOM...IT'S CALL "ASSET INFLATION"...WITH EMPHASIS ON THE WORLD "INFLATION!"
TROUBLE COMES TO WALL STREET WHEN CREDIT AND LIQUIDITY COLLAPSE...
WE HAVE BEEN ON AN EASY MONEY ORGY AT THE FED FOR AT LEAST 10 YEARS...PERHAPS LONGER.
THERE SEEMED TO BE NO END TO THE WILLINGNESS OF FOREIGNERS TO BUY DOLLARS AND DOLLAR DENOMINATED DEBT...
THAT COULD BE ENDING...
I WOULD COMPARE THE CURRENT SITUATION WITH THAT OF 1968 TO 1978...
READ THE STORY OF THAT DISMAL PERIOD IN WALL STREETS HISTORY AND YOU WILL KNOW...WHAT COMES NEXT...
WE HAVE BEEN IGNORING THE COMING "STAGFLATION" FOR WAY TO LONG...
WHILE THE STREET WAS SINGING HAPPY DAZE ARE QUEER AGAIN...
IF THIS DECLINE WERE ONLY ABOUT "OVER-BOUGHT" CONDITIONS... EXHUBRANCE OF MONEY RUNNERS...SEEKING "PERFORMANCE" OR EARNINGS DECLINES...THAT WOULD NOT BE A REAL PROBLEM...
IF THIS DECLINE IS ABOUT LIQUIDITY, CREDIT AND THE WEAK DOLLAR..?
WE HAVE A BIG PROBLEM...1970's STYLE...
