Posted on 12/07/2013 4:42:39 PM PST by SteelToe
They say those who forget the lessons of history are doomed to repeat them.
As a student of market history, I’ve seen that maxim made true time and again. The cycle swings fear back to greed. The overcautious become the overzealous. And at the top, the story is always the same: Too much credit, too much speculation, the suspension of disbelief, and the spread of the idea that this time is different.
It doesn’t matter whether it was the expansion of railroads heading into the crash of 1893 or the excitement over the consolidation of the steel industry in 1901 or the mixing of speculation and banking heading into 1907. Or whether it involves an epic expansion of mortgage credit, IPO activity, or central-bank stimulus. What can’t continue forever ultimately won’t.
The weaknesses of the human heart and mind means the swings will always exist. Our rudimentary understanding of the forces of economics, which in turn, reflect ultimately reflect the fallacies of people making investing, purchasing, and saving decisions, means policymakers will never defeat the vagaries of the business cycle.
(Excerpt) Read more at zerohedge.com ...
Our problem is that all remember history, and are eager to repeat it.
Especially since the last solution, bigger government, worked to their benefit.
I wouldn’t be surprized if Yellen precipitates a crisis because that’s what her boss needs right now.
Yes, just ripping the Constitution to shreads is not enough. Continuing this status quo damages the US, but means 0’ still has to exit in 3 years. What they need is something more calamitous than mere Constitution shreading. A new Yellen induced crisis might be in order...
That chart is freaky.
Agreed. Want to show it to spouse.
Agreed, the imposter is not going to let go of his celebrity status and airplane easily, and without that he’s less than nothing.
Impossible with the brilliant minds we have running our monetary polices...
Of course our perfect pant crease POTUS has everything under control...
He is after all, the most brilliant smartest guy ever to grace the planet with his presence...
He cannot fail...
yep
Just the excuss they will need to give him a third term so he can ‘fix’ such a crash just as he ‘fixed’ so many other things.
Preppers’ PING!!
When SHTF all electronic money will evaporate.
Cash will be king!
This recovery is based on money (QE), not value. Once people realize that, things won’t go so well.
“WHAAAAAAT??? Those stock prices DON’T mean the economy’s doing well???”
I have a question for you. I am retired and most of my income comes from investments in the stock market. If I were to cash out what should I reinvest in?
Silver, dry store food, power generator, fuel, seeds, ammo, clothes, medicine and a surgical kit, water containers and purificaton, more food, ...
“Cash will be king!”
There’s absolutely no guarantee that if the bottom falls out we won’t reconfigure our currency, and like Zimbabwe all the money in your mattress will barely buy a loaf of bread.
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