- What's causing the whipsaw gyrations in the markets right now
- Why turning conventional wisdom on its head makes great sense when it comes to saving money
- Why the 10-year "unstoppable" bull market is now dead, and what that will mean in 2019
- What will happen next & what to do now
After ten long years of steadily rising equity markets, or ““markets”” as we like to call them to denote their fictitious and often fraudulent nature, something approximating volatility has returned here very late in 2018.
As we head into 2019, we’re expecting to see a lot more volatility and even more losses as reality once again steps back into vogue. It never really left, of course, only was kept away for a while with monetary Botox administered by self-delusional bankers and politicians unable to face their many failures directly.
Every recovery eventually ends. And this one is no different.
In our view, however, any recovery built on a foundation of cheap credit will not only end, but end badly.
What’s the plan from here? Continue to pile up debt at a faster pace than economic growth forever? What about the idea that economic growth has slowed of late and cannot grow forever for resource related reasons? Is anybody in power paying even the slightest bit of attention?
Most importantly, what happens when ~40 years of excessive debt accumulation comes to an end? Do financial systems and institutions even function anymore?
Nobody has a good answer to these questions, which is why the Federal Reserve, et al., are terrified to find out what happens when their grand debt bubble experiment comes to an end. Mad max is not out of the question folks. A lot of things very suddenly no longer work when the credit not only dries up, but goes in reverse. Very basic things like food and gasoline distribution networks and public safety payrolls become difficult to maintain. Just ask Venezuela.
Specifically, what we see coming is…