{"id":42035,"date":"2018-12-28T08:10:00","date_gmt":"2018-12-28T13:10:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42035"},"modified":"2018-12-28T08:10:00","modified_gmt":"2018-12-28T13:10:00","slug":"2019-zombie-markets-before-the-fall","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42035","title":{"rendered":"2019: Zombie Markets Before The Fall"},"content":{"rendered":"
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2019: Zombie Markets Before The Fall<\/a><\/h3>\n<\/div>\n<\/header>\n
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Francis Tattegrain La ramasseuse d\u2019\u00e9paves (The Beachcomber) <\/b>1880<\/center><\/div>\n<\/div>\n

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I haven\u2019t really written about finance since April of this year, and given recent fluctuations in what people persist in calling the markets, maybe it\u2019s time. Then again, nothing has changed since that article in April entitled This Is Not A Market<\/a>. I was right then, and I still am.<\/p>\n

[..] markets need price discovery as much as price discovery needs markets. They are two sides of the same coin. Markets are the mechanism that makes price discovery possible, and vice versa. Functioning markets, that is. Given the interdependence between the two, we must conclude that when there is no price discovery, there are no functioning markets. And a market that doesn\u2019t function is not a market at all. <\/i><\/p>\n

<\/i>[..] we must wonder why everyone in the financial world, and the media, is still talking about \u2018the markets\u2019 (stocks, bonds et al) as if they still existed. Is it because they think there still is price discovery? Or do they think that even without price discovery, you can still have functioning markets? Or is their idea that a market is still a market even if it doesn\u2019t function?<\/i><\/p><\/blockquote>\n

But perhaps that is confusing, and confusion in and of itself doesn\u2019t lead to better understanding. So maybe I should call what there is out there today \u2018zombie markets\u2019. It doesn\u2019t really make much difference. What murdered functioning markets is intervention by central banks, in alleged attempts to save those same markets. Cue your favorite horror movie.<\/p>\n

Now Jerome Powell and the Fed he inherited are apparently trying to undo the misery Greenspan, Bernanke and Yellen before him wrought upon the economic system, and people, cue Trump, get into fights about that one. All the while still handing the Fed, the ECB, the BoJ, much more power than they should ever have been granted.<\/p>\n

\u00a0\u2026click on the above link to read the rest of the article\u2026<\/p>\n

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2019: Zombie Markets Before The Fall Francis Tattegrain La ramasseuse d\u2019\u00e9paves (The Beachcomber) 1880 I haven\u2019t really written about finance since April of this year, and given recent fluctuations in what people persist in calling the markets, maybe it\u2019s time. Then again, nothing has changed since that article in April entitled This Is Not A […]<\/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":[39,88,7792,303,1583,23639,506,5129,23541,13924,753,5177,2589,903],"class_list":["post-42035","post","type-post","status-publish","format-standard","hentry","category-economics","tag-assets","tag-bonds","tag-downgrade","tag-fed","tag-housing","tag-junk","tag-markets","tag-overvalued","tag-powell","tag-raul-ilargi-meijer","tag-stocks","tag-the-automatic-earth","tag-value","tag-zombies"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42035","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=42035"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42035\/revisions"}],"predecessor-version":[{"id":42036,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42035\/revisions\/42036"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}