The End Of Fed QE Didn’t Start Market Madness, It Ended It

[Raúl Ilargi Meijer]

DPC Broadway at night from Times Square 1911 Jeff Cox at CNCB wrote a reasonable piece yesterday, but chose a 180º wrong headline for it. And that mat
[See the full post at: The End Of Fed QE Didn’t Start Market Madness, It Ended It]

[Tulsatime]

I never cease to be amazed at the claims for the market and the fixes for the market. If the market blows up and threatens to melt totally away, the standard fix is to suspend the major forces of the market. Interest rates have to go to zero, and the government has to pump money into the market. Because we couldn’t have markets if we didn’t have banks to manipulate, make, and move the markets. But markets for banks are financial products, securities and derivatives and hedges, while markets for the rest, the bottom up markets, are business loans and mortages and car loans. So we will never be able to count on government or banks to fix real markets, because they don’t know or care about them.

[UnhingedBecauseLucid]

To complete Charlene Chu’s quote: “China has replicated the entire U.S. commercial banking system’s balance sheet– which took a century to build– in the span of half a decade.”

I think we don’t nearly dwell enough on that…even considering China’s exceptional ability with “regulatory forbearance” .

So we can assume that that last Chinese “run for it” boom is what drove oil and commodity prices all this time, on the presumed crest of the peak oil supply curve.
So either the newly “fully developed & vascularized” China gets a social safety net and begins consuming like we did from 1950 to 2008 and all will be well (not really, but let’s pretend)…
OR
…demography will dictate that capitalism needs another emergent market miracle and therefore suggest India have a go at it…
OR
…the general “malaise” get’s to be understood by enough people. Then, the shit truly hits the fan as critical mass of them realize how fucked we are…

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