An Ugly Bear Lurks
Salient points that we concur with from Bill Fleckenstein's latest...
"For example, a recent short-term thesis I had was to expect a "Fed is done" rally. A major long-term thesis is "the next time down."
The timing of that outcome has been elusive because of the complete abdication of responsibility on the part of lending institutions in America -- and worldwide, for that matter -- and the complete abdication of responsibility on the part of all central banks. We live in a purely fiat world, in which money is spewed out at the speed of light.
Again, trying to capture the timing of when that is going to matter has been rather difficult. But I believe the problems in the housing market, the dark-matter universe and consumers' pocketbooks are coalescing. And sometime soon-ish, we'll start to see obvious disappointment."
"For example, a recent short-term thesis I had was to expect a "Fed is done" rally. A major long-term thesis is "the next time down."
The timing of that outcome has been elusive because of the complete abdication of responsibility on the part of lending institutions in America -- and worldwide, for that matter -- and the complete abdication of responsibility on the part of all central banks. We live in a purely fiat world, in which money is spewed out at the speed of light.
Again, trying to capture the timing of when that is going to matter has been rather difficult. But I believe the problems in the housing market, the dark-matter universe and consumers' pocketbooks are coalescing. And sometime soon-ish, we'll start to see obvious disappointment."
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