Tag Archives: bust

2008 Was a Crisis… It Was Not THE Crisis

Think of 2008 as a primer. A very difficult and disruptive primer. Nothing’s “fixed.” Markets never really cleared.

Additionally, as is explained below, the now 0% interest rates are almost locked there as the cost of serving US debt by the US government would explode upward with increased (and very likely closer to real market level) rates. That’s a sticky place to be to say the least.

But people will continue blissfully along, until they can’t. Then they’ll scream that “capitalism” messed everything up. Watch.

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Doomsday clock for global market crash strikes one minute to midnight as central banks lose control

Look at it this way. If you are part of the vast, generally assetless or nearly assetless middle class you won’t have to watch the value of what you have decline. I guess that’s a good thing, sort of.

The world is slowing. China is in serious trouble and the ripples emanating from Beijing are becoming waves. The Keynesian experiment post-Crash is failing. (As the Austrian economists said it would.)

World markets are built right now on cotton candy and the rainbow dreams of central bankers. There isn’t a lot of support below world asset prices as John Ficenec at The Telegraph explains.

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