Note: For those who continue to believe that I’m a pessimist (and not simply a “realist”), take note of this and the most recent re-posted articles. It’s not like I’m making this stuff up. What’s left is for the reader to choose – between two opposite world views: “we’ll muddle through” or “the sky is falling”. One of these is delusional…you make up your own mind, but understand this: the unsinkable Titanic did hit an iceberg, it did sink, and there were not enough lifeboats. – HT
Our economic problems run far deeper than what can be healed by more reckless bubble-blowing by the Federal Reserve. At the center of global economic turmoil is a mountain of bad debt that was extended on easy terms by weakly regulated lenders with a government safety net. Global leaders have done all they can to protect the lenders at the expense of the public – to make good on the bond contracts of mismanaged financial institutions by breaking the social contracts with their own citizens. The limit of this unprincipled madness is being reached.
– John Hussman