Now, 13 years later, the coordinated central bank’s “temporary emergency measures” are larger and have continued. Money printing from modern central banks (aka Modern Monetary Theory) has destroyed the price discovery mechanisms in markets. Despite this, the US Senate’s finance committee head, Bernie Sanders, has embraced these insane policies. The central bankers over here, directed by Government policymakers have bailed out billionaires, not the High Street.
Look at your own high street—small businesses and mum and dad shops are gone. Once again, after printing 100s of trillions of pounds and dollars, these same central bankers assure us “inflation is transitory”.
Is this similar to temporary one-off emergency measures?
On many of Britain’s radio stations, we are frequently told of how “new wealth” may be created by investing in new financial products. All of the adverts end with this cautionary phrase: “Your Capital Is At Risk.”
When the share, property, fixed income, and credit markets reach a point of exhaustion, they “bubble” to extreme valuations.
Today, we are at that breaking point: living on borrowed time in a fantasy world, detached from reality with ludicrous valuations.
During the irrational exuberance of bubbles, the retail investors are always the last to dive into markets as they peak while institutions and executives are dumping shares.
Frightened? You should be.
Read more: Frightened? You should be – history’s greatest financial crisis is coming Mitch Feierstein