Back when the market was a market.
We are in the midst of a giant, and unprecedented experiment in monetary policy. Central banks around the world have inflated asset prices in an effort to create a “wealth effect.” What they have created is a situation where those with assets, the rich, have done extremely well while the non-asseted have had to watch while life has gotten harder.
This asset inflation is not sound however and the “wealth” it has created is illusory.
Venezuela is seeing some challenges. But this is what happens when planners try to deny the natural tendency of prices to ebb and flow.
For a pro-free enterprise site we are pretty nice to Bernie Sanders. We respect the dogfight he’s in right now and he’s an interesting guy. But…Well, we’ll let Tom address some of the issues.
If you comment on this one please watch the entire video.
The universe has patterns. Either go with the flow or pay later. Looks like we are “paying later.”
A serious recession would be terribly trying particularly in light of the geopolitical jockeying going on right now. Acute financial pressure, and it is already acute in some parts of the world, makes for instability. Leaders do stupid things when countries are in economic pain.
Sure, “European banks.” All banks.
People in America are just plugging along seemingly oblivious to the storm which continues to gather strength overseas and in some cases is already buffeting the United States. It is foolhardy. We have just gotten used to the new post-2008 lower standards of living in this country and we want to think that the global depression which started in 2007-2008 is all over. It’s not.
Will the world go to hell in a hand basket tomorrow?
I’m not a big fan of Mr. Soros generally but he is a guy one should pay attention to on international financial matters. It’s no small thing when he says we might be looking at another 2008-like crisis. Though Soros has made big mistakes in the past.
Regardless of what Mr. Soros says, from looking at the headlines the man made storm, the central bank created storm, appears to be picking up steam. Today should be an interesting one in the markets for sure.
He basically said, We screwed up and the current stock market levels are baloney.
No big deal. It’s only the Fed. It’s only the WORLD economy which has been inflated and which you are now warning us must deflate to correct for the Fed’s mistakes. I mean it’s not like 2008 was created by the Fed or anything. So “watch out below” is the message huh? Thanks for the heads up.
It is interesting that Fisher makes reference to the junk bond problems of a few weeks ago.
If you want to know what happened in 2008, I mean really want to know, read this excellent (and short) book.
I haven’t seen the movie yet but I might over the weekend. One of the reasons I haven’t seen it yet is because I have heard that it pounds on the same old (false) reasons for the 2008 Crash, that being that somehow the market “failed.” That “greed” was the culprit, etc. etc. It’s what most people believe.
Illiquidity, ah yes, it makes yet another appearance. I remember as I watched markets implode in 2008 the inability to get off of assets was of serious concern to everyone. “How are we going get rid of this crap?” Many a morning I remember getting up and looking at the tape, which for a long stretch was unmercifully bad, and hearing about how such and such was “illiquid,” how the markets generally lacked liquidity etc.
Call them whatever you want but today’s stock markets aren’t really markets. Markets are supposed to go up and down. Gains and losses. Winners and losers. Markets are not supposed to be governed by governments for the monied classes. But that’s where we are at now.
Isn’t this fun!?
The good news is the market is up right now. The bad news is the Dow was up yesterday for most of the day but then closed 200 points down.
It should be remembered that even in tumultuous moments like the one we are in the market rarely goes straight down.
This is a piece on my wall which was inspired by coding and coders. Data 1
I’ll say from the outset that this article is not for everyone, (and it is LONG) but I found it intriguing and potentially very useful for people who are trying to get their heads around what the economy – what I would consider the REAL economy – is doing right now.
And on a personal note I have to give a nod to my dear old Dad who,
Maybe there was a time when the political culture seemed to keep up with the pace of innovation. If so, those times are long gone. The rhetoric of electoral politics is exposing the great rift in civic life.
The tools we use every day, the technologies we love, the way we engage each other, the means by which our lives are improving are a consequences of innovation, markets, community, and globalization — that is,