It is a truism in investing that the markets are looking nine months to a year into the future and discounting what they see.
That is so dumb.
The markets are comprised of many humans. Humans look into the past for guidance as to what may happen in the future. The markets similarly are looking into the past for guidance.
If they were looking into the future they would never crash as they do about every ten years and then get bailed out with infinite giveaways to the rich by the Fed and Congress.
So what do markets see as they peer into the past? They see that every time they crash they get bailed out by the Fed and Congress - which are determined to enforce a socialism that protects the assets of the rich by socializing market losses and priviatizing market gains.
Understandably they see this repeating indefinitely into the future.
The fuutre we are facing now though is unique in that the amount of cash needed for bailouts have become so large there is a legitimate question of how much immediate harm will the next bailouts cause in terms of fueling an intorlerable infaltion?
The markets can not look into the future on that one, because it is not written in the past.
We will have to wait and see.
But anyone can make their own educated guess.
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