{"id":15209,"date":"2015-12-12T16:11:56","date_gmt":"2015-12-12T21:11:56","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15209"},"modified":"2015-12-12T16:12:26","modified_gmt":"2015-12-12T21:12:26","slug":"the-precipice","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15209","title":{"rendered":"The Precipice"},"content":{"rendered":"

The Precipice\u00a0<\/a><\/h3>\n
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\u00a0Global markets have found themselves again at the precipice. My sense is that everyone\u2019s numb \u2013 literally dazed and confused from prolonged Monetary Disorder and the resulting perverted market backdrop. Repeatedly, \u201cThe Precipice\u201d has signaled easy-money buying and trading opportunities. Again and again, selling, shorting and hedging at \u201cThe Precipice\u201d guaranteed you were to soon look (and feel) like an absolute moron \u2013 for some, progressively poorer dunces the Bubble was pushing yet another step closer to serious dilemmas (financial, professional, personal and otherwise). A focus on risk became irrational. Fixation on seeking potential market rewards turned all-encompassing.<\/p>\n

All of this will prove a challenge to explain to future generations. Keynes: \u201cWorldly wisdom teaches that it is better for the reputation to fail conventionally than to succeed unconventionally.\u201d And paraphrasing the great Charles Kindleberger: Nothing causes as much angst as to see your neighbor (associate or competitor) get rich. In short, Bubbles are all powerful.<\/p>\n

Going back to those darks days in late-2008, global policymakers have been determined to not let the markets down. Along the way they made things too easy. \u201cDo whatever it takes!\u201d \u201cShock and Awe!\u201d \u201cReady to push back against a market tightening of financial conditions.\u201d \u201cDo what we must to raise inflation as quickly as possible.\u201d Historic market excess and distortions were incentivized and, predictably, things ran amuck. \u201cQE infinity.\u201d Seven years of zero rates, massive monetary inflation and incessant market backstopping have desensitized and anesthetized. Rational thought ultimately succumbed to \u201cperpetual money machine\u201d quackery. And now all of this greatly increases vulnerability to destabilizing market dislocations, as senses are restored and nerves awakened.<\/p>\n<\/div>\n

It was a week of ominous developments among multiple key flashpoints. Let\u2019s start with commodities and EM, where the accelerating downward spiral is now rapidly reaching the status of \u201cunmitigated disaster.\u201d<\/div>\n
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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Precipice\u00a0 \u00a0Global markets have found themselves again at the precipice. My sense is that everyone\u2019s numb \u2013 literally dazed and confused from prolonged Monetary Disorder and the resulting perverted market backdrop. Repeatedly, \u201cThe Precipice\u201d has signaled easy-money buying and trading opportunities. Again and again, selling, shorting and hedging at \u201cThe Precipice\u201d guaranteed you were […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7756,3319,1732,368,11017,661,8765],"class_list":["post-15209","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit-bubble-bulletin","tag-em","tag-emerging-markets","tag-global-markets","tag-precipice","tag-qe","tag-quanitative-easing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15209"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15209\/revisions"}],"predecessor-version":[{"id":15211,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15209\/revisions\/15211"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}