The Most Astounding Credit Binge in History
Stripped Gears
DELRAY BEACH, Florida – “The Donald” breathed a sigh of relief yesterday. He and other rich people got a break from the beating they’ve been taking: Stocks bounced, with the Dow ending yesterday’s session up more than 600 points.
The gears have been stripped, and they look rusty…
Photo credit: Jonathon Cianfrani
Yesterday’s bump confirms the mainstream view: There is nothing to worry about. The recent sell-off is just a case of nerves, not a sign of an epizootic.
DJIA: don’t worry, be happy? – click to enlarge.
Here is U.S. Trust, a private bank for the ultra-wealthy, reassuring its customers:
“The action in the past few days has been based on fears that we will revisit the market environment from 1997 to 1998, in which the Asian currency crisis led to a sizable correction in world equity markets. A second breakdown in energy, a continued fall to record‐low prices in many commodities, and a deep drop in emerging market currencies and equities are sparking fears that a global growth recession is coming our way. And add to that the fact that investors are worried that the Federal Reserve may tighten into a large-scale slowdown is increasing the flight to safety.”
U.S. Trust, like Donald Trump and much of the media, blames the Chinese for the recent sell-off. Emerging market economies are slowing, they say, as the U.S. and developed economies are moving into “higher gear.” Higher gear? As near as we can determine, the gears have been stripped.
…click on the above link to read the rest of the article…
