If I can show you that economists, central bankers and stock analysts are blind in the area of their expertise to the most obvioussetup for disaster ever, then you’ll realize we are perfectly poised for potentially the greatest stock market crash in history. Many times in the past few months, I’ve heard these people say that the present bull market cannot crash spectacularly yet because we have not seen the kind of irrational exuberance that is required to set things up for such a crash. I shake my head in amazed disbelief as I listen to the most irrational nonsense about a stock market rally that was by far the most exuberant we have ever seen!
When the end of the financial world comes, it comes quickly. Because of the irrationality that allows such events to build up, it also comes unexpectedly to the majority of people in the financial world (and to others). The one essential ingredient for a truly massivefinancial crash is that almost no one sees it coming.
Simply put, the higher and steeper the rise, the more spectacular the fall; but the market and the economy it is operating in have to be rickety in order for things to go down like a house of cards. For that kind of situation to develop, market analysts have to be blind to the flaws around them (which looks completely irruption to those who can see).
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No one sees it coming except for those who orchestrate the Bull Market in the first place.
ReplyDeleteCheck out the documentary: Inside Job - it covers the 2008 financial crash and housing bubble.
Fabulous job was done in that documentary. It is presently on Netflix.