...Certainly a crash is eventual. But is it imminent?
Over the last decade we’ve consistently underappreciated the ultimate extreme limits of the effects of radical central banking policies. Whether it was residential property prices in the mid-2000s or present day government debt yields, we continue to be shocked and dismayed by how far prices can drift out of orbit from the economy. At the moment, this goes for the U.S. stock market too.
In this respect, we must recognize and attempt to fully appreciate that global central banks are on a collective suicide mission. They think that printing money and buying stocks will save us from ourselves. In practice, this means that before stocks melt down we could be treated to the grand spectacle of an epic melt up; a historical measurement of the insanity of central bankers.
We don’t like it. What’s more, the overall destruction to the economy and personal living standards will be grave. But we cannot deny the reality of the parallel universe we find ourselves in. All reservations must be suspended.
Stocks may not only shoot to the moon. They may keep on going to Mars – and Hades – before this is over.