The highest summit of irrational exuberance ever not seen by those engaging in it makes the perfect peak for the greatest global economic collapse ever not known by those who fell into it.
Some days the level of denial in the stock market twists my head into a knot — not because I am surprised at lemmings jumping over a cliff because they know all the other lemmings are going to jump. In that case, the jump will pay off because the market IS the crowd, so it goes wherever the crowd goes, and the lemmings are merely betting on where the crowd is heading. I understand that.
The head-twisting knot comes when I endlessly see so many seemingly smart people parrot the same falsehoods in their writing when the self-deception is so obvious. Attempting to break through the mainstream media’s deception about the economy is why I started this blog, but the deception and delusion has become almost entirely accepted delusion.
Today I read a writer who clearly had a solid grasp of how irrational and overvalued the US stock market is right now — that was the whole point of his article — and yet even he wrote the following incongruous statement simply because it is what so many people are saying: (emphasis mine)
Indeed the stock markets crumbled under that Fed-tightening onslaught, plunging 19.8% over the next 3.1 months into late December 2018. That severe correction was right on the verge of crossing the -20% threshold into new-bear territory.
Read the rest here: The Great Recession