It's fine, I got banned by Mish, of course. Who on this
thread didn't? -g-. General chaos these days. The outcome of
the collapse of a major credit bubble (+ enormous Ponzi finance
in derivatives), followed by a major government bailout and
printing is hard to comprehend, except for the
statement that it should not work this time, the old ways that
got us into this mess can't get us out.
What is even more disturbing for
the inflation/deflation fight (why fight anyhow?) is that
since the derivative bubble was fixed and patched by liquidity
similar to "Greenspan/Bernanke put" LTCM fix, and the Fed
"fix" appears to be working as usual, with derivative market
growing in size! In fact, 2009 was one enormous Bernanke
put. It required a lot more liquidity, and quite a bit of money
printing. -g-
So, the bulls are laughing at the bears again.
We know of course that was not a good long term fix. But,
for now the bears remain in a waiting mode, while watching
the dollar slide, in part because of being #1 carry trade
borrowing currency.
It is rather clear how this ends, with the government
funding crisis, which is the topic of this thread.
The mess that blew up was essentially transferred onto
the government's balance sheet. However,
timing is unclear, and the way it will happen is also
unclear. |
