A good op-ed from Paul B. Farrell at Marketwatch.com. He explains that despite how different things seem in the markets, despite the technologies utilized and new strategies employed, it is never “different this time.” And we ignore this reality at our peril. But ignore many do. They’ve “sequestered their brains” says Farrell.
He’s so right. As the Dow climbs higher and has climbed higher people have considered taking leave of their senses, some have. Farrell warns us to be careful. Nothing has been fixed. There is still a massive debt black hole looming over the world economy. The Fed may indeed print and pump but the debt piper will be paid. He always is.
Warning: Forget the cuts, your brain is sequestered. That’s the real problem: Your brain. That’s why the economy and markets will crash, a new Dow high notwithstanding. Why it’s inevitable. Bigger crash than 2008. Longer afterwards. No bank bailouts. Austerity worse than the Great Depression. Hunker down.
Hunker down or don’t, no one has a crystal ball which can pinpoint crashes and booms, no one. Just remember one thing is clear- it is never “different this time.”