With the recent plunge in the S&P 500 of over 5%, has the long-anticipated (and long-overdue) market correction finally begun? It is hard to say for certain, but the systemic cracks we have been closely monitoring definitely got an awful lot wider this week.
After nearly a decade of endless market boosting, manipulation, and regulatory neglect, trading professionals are watching with held breath at this stage. The central banks have distorted the processes of price discovery and market structure for so many years now, that it is difficult to know, yet, whether their grip on the markets has indeed failed.
What we know for certain is that bubbles always burst. Inevitably. Each is built upon a fallacy; and when that finally becomes apparent to enough people, the mania ends. Today, there are currently massive bubbles in stocks, bonds, and real estate. Every one courtesy of the central banks.
With no Plan B in place to gracefully exit the corner they have painted themselves — and thereby the global economy — into, the only option available to them is to double-down on the pretense that we would all be screwed without their stewardship. They have to do this I suppose. To admit the truth would throw the world into panic and themselves out of a job.
You can access the entire report at the following link, HERE
