{"id":40694,"date":"2018-11-19T07:20:40","date_gmt":"2018-11-19T12:20:40","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40694"},"modified":"2018-11-19T07:20:40","modified_gmt":"2018-11-19T12:20:40","slug":"the-broken-clocks-minute","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40694","title":{"rendered":"The Broken Clocks\u2019 Minute"},"content":{"rendered":"

The Broken Clocks\u2019 Minute<\/a><\/h3>\n
\n

<\/p>\n

Sometimes the reasons you\u2019re wrong turn out to be the reasons you\u2019re right.<\/strong><\/p>\n

Even a broken clock is right twice a day.<\/p>\n

Old Wall Street adage<\/p><\/blockquote>\n

Anyone who has consistently sounded cautionary or outright bearish notes during the last nine years of relentlessly rising equity markets has been cast aside. Wall Street is bipolar. You\u2019re either right or wrong, and wrong doesn\u2019t buy mansions and\u00a0Maseratis. Like that broken clock, the so-called permabears have had a couple of minutes when they were right, far outweighed by those 1438 minutes when they were wrong.<\/p>\n

Or maybe it\u2019s all a matter of perspective, and it\u2019s the last nine years that amounts to two minutes. In geologic time nine years isn\u2019t even a nanosecond. Perhaps even on time periods scaled to human lifetimes and history, the last nine years will come to be seen as an evanescent flash that came and ignominiously went.<\/p>\n

Markets don\u2019t listen to reasons. They\u2019re exercises in crowd psychology and crowds are emotional and capricious. That doesn\u2019t mean that reason is a useless virtue in market analysis, quite the opposite. It\u2019s reason that allows the few who are consistently successful to separate themselves from the crowd and capitalize on its emotion and caprice.<\/p>\n

Reason identifies rising stock markets as one symptom of a sugar high global economy. Since 2009, staring into the abyss of debt implosion, central banks acting in concert have promoted furious debt expansion as the finger-in-the-dike remedy. Governments expanded their fiat (aka out of thin air) debt, and central banks monetized that debt with their own fiat debt. Not only did that create loanable reserves within the banking system\u2014private debt fodder\u2014it drove interest rates so low that yield-deprived investors were herded into the stock market. Borrowers won, savers lost.<\/p>\n<\/div>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

The Broken Clocks\u2019 Minute Sometimes the reasons you\u2019re wrong turn out to be the reasons you\u2019re right. Even a broken clock is right twice a day. Old Wall Street adage Anyone who has consistently sounded cautionary or outright bearish notes during the last nine years of relentlessly rising equity markets has been cast aside. Wall […]<\/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":[63,23058,124,175,195,309,1849,431,534,12280,12281,860],"class_list":["post-40694","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-broken-clock","tag-central-banks","tag-credit","tag-debt","tag-fiat-currency","tag-financial-markets","tag-interest-rates","tag-monetary-policy","tag-robert-gore","tag-straight-line-logic","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40694","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=40694"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40694\/revisions"}],"predecessor-version":[{"id":40695,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40694\/revisions\/40695"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}