Sunday, August 14, 2016

Understanding The Waves 
Of The 2000-2016 Financial Crisis
Danielle Park explains the waves of crisis since the 2000 bubble burst .. it's about debt, excessive spending, overcapacity, superfluous infrastructures .. "To reform and finally recover from our generation’s financial demise: facts must be faced. All of the price gains in risky assets since at least 2010 have been unwarranted, irrational and unsustainable. And just as China is finding today, running full speed off a cliff in hopes that the ground will miraculously rise up to catch you, is a self-destructive plan. My partner Cory Venable‘s long term chart of the S&P 500 shows the precarious level at which stocks now hover, blindly hoping (as they did in 2000 and 2008) that the ground –falling consumer demand and economic growth–will reverse course and rise up to prevent their fall. S&P Aug 12 2016So entranced and desperate are participants today, that they have strapped on record amounts of margin/debt to accelerate their speed off this cliff–the very opposite of parachutes. The next phase of this crisis is the monetary-faith-bubble bursting, and asset prices succumbing to laws of math and the business cycle once more. The secular bear lives and has been incited to maul for the third time since 2000. Reckless policies have earned its wrath."
LINK HERE to the analysis

1 comment:

Anonymous said...

Larry White: First Step in Global De-Dollarization

The Special Drawing Rights (SDR) is probably one of the least sexy topics a person could discuss. While it is far from sexy, it may be the single most important topic over the coming year(s). With some of the changes that are currently being discussed we should all be doing our best to spend a little time to introduce ourselves to this little known “unit of account” or “global fund” or “IMF money”. Since we, the citizens of the world, do not come in contact with this form of “funding” it is not usually discussed or thought about.