Those betting on a fourth bubble of even greater extremes will find their time at bat has come to an end. The conventional investment wisdom holds that central banks will never let markets decline. This is an interesting belief, given that two previous asset bubbles based on central bank “easy money” both imploded, impoverishing believers in central bank omnipotence. *** So perhaps we can say that the conventional investment wisdom holds that any asset bubble that bursts will quickly be reflated into an even more extreme asset bubble. That’s certainly been the history of the past 17 years.
This post was published at Charles Hugh Smith on MONDAY, DECEMBER 11, 2017.