“We’re floating inside a full-blown, central bank confidence balloon, and all it takes to burst this is a flick of the psychological switch.” “The modern-day financial technologists have developed a system to kick the can down the road —” Whether it’s investing in profitless corporations, junk bonds, or real estate, investors have embraced the absurdity of buying risk assets while entering the biggest recession in the modern era. “Central banks consume everything, even assets outside their remit.” “The madness of crowds forces investors to front-run monetary and fiscal stimuli while ignoring everything else.”
“In August 1720, the South Sea Company collapsed when the business could not support a 50% dividend payment — shares fell back to pre-bubble levels, and the mania had ended.”
“In the end, all we’ve done is rewrite the history books but with a modern twist. No authority has ever defeated economic gravity, and it has no plan to surrender anytime soon.”
winningthinking.uk gives you a grip of the psychological switch to deploy or just keep fueling the madness, the choice is yours. In 1720 some smart people were duped too.