We’ve featured Charles Hugh Smith a number of times at ACC. He’s one of my favorite economic commentators. If you don’t have his site Of Two Minds bookmarked you should consider it.
(From Of Two Minds)
The central bank/state plan for 2015 is a continuation of the same plan that’s been in play since 2009: drive everyone with any cash or capital into ruinously risky bets. The problem for the central bankers/states driving everyone into risk assets is the yields on these bets are entering the exhaustion zone of marginal returns.
In other words, what worked wonderfully for years no longer works at all…
…During this expansion phase, every borrower/buyer is a financial genius, and every central bank that drove everyone into ruinously risky assets is omnipotent and god-like. But when the limits that are intrinsic to Ponzi Schemes are reached and the asset bubbles deflate violently and unpredictably, the geniuses face financial ruin and the central bankers are revealed as scammers, liars and hubris-soaked fools.
Meanwhile, those who resisted the siren song of central bankers to risk their capital and incomes in asset bubbles are derided as Bears who have missed out on the Greatest Bull Market of All Time. When the wheels fall off, all the smart guys naturally claim to have exited at the top. But it is impossible for everyone to sell at the top; the assets are owned by someone all the way down.