How is it possible for the average American to get poorer at a time that should have been the most productive and prosperous ever?
Betting against mathematical odds has won every time so far.
Stock markets are slipping all over the world. But outside of Russia and Greece, there is no sign of real panic. That will come later.
Driven by central bankers who are “wiser than God.” But it might get even more hideous before this story ends.
The middle classes – aka “the voters” – expressed themselves last week. They have been sorely used and they know it.
“Hey… you want a wealth effect? I’ll give you a wealth effect!”
The further the country goes in the wrong direction, the more people there are who have a financial interest in staying on the same road.
Never before in the long, comic history of mankind and its money have central bankers taken such a keen interest in asset prices. Now they create money, out of nowhere, for the express purpose of pushing them up.
We’ve spent our entire life in a credit expansion. We began life when the cork came out of the credit jug. We’ve all been pulling hard on it ever since. Heck, we’ve lived on it. “Hey, we’ll pay you later,” we said. But what if “later” is now?
When you conduct your financial affairs as loosey-goosey as Argentina, no one will lend you money. Then – gracias a Dios! – you’re forced into solvency.