Our imagination has just started. First of all,  I didn't mean to offend anyone, it's solely my own personal opinion.

We share and give.

2008 

I was glued to the CNBC live broadcast every middle of the night, each time Mr.Bernanke was questioned. And the indexes are free falling.......and I recall that particular moment of anxiety disorder and depression . Hoping for any clue from the news? Yes. Doomed! Since 2009 I never watched that channel again. Never. 

I recalled this phrase "To be greedy when others are fearful?" Think again if you have lots of assets, liabilities and your beloved family need to feed on. Unless you have non. Unless you are living below your mean. Unless you don't have excess. Unless you are filthy rich. Unless you are the founder/house. Or you have the crystal ball.

2014-15

Is it real?

I have to admit, this is the first time since 2008, I felt my nervous system running across my entire body. Since the monetary policy and fiscal fixes didn't address the real issues, as mentioned earlier in my previous posts, all they can possibly do is to increase the magnitude of the next collapse. Will you believe it?

Will you believe it?

For the past five years, we have pursued the fantasy that we could be better at sustainable growth and improved core policy and fiscal distortion without having fixed or change anything. The core policy of the fantasy is the consensus of "serious economist." Those priest host PhD economist protected by academic tenure and state positions, what all suffered in 2009 was not the collapse of leverage crony state financialization but a temporary decline of aggregate demand and productive capacity. 

The solution? 

The economics "witch doctors " asserted was simple. Replace temporarily slack private demand with government funded demand famously called deficit spending and flood the impaired financial system with liquidity or free money and increase the incentive to borrow more. Will it sustainable? 

A sustainable growth? 

In other words the "serious" economist solution was to transfer all the interest earned by the savers to the banks to push the household to buy riskier assets from all over Asia on credit. The overly concerned expansion of demand is, more than anything and absolutely loves building enormous mansions in the middle of nowhere on credit. This will push businesses to borrow more and more from banks. ( Damn, I hate Banks) Real growth? 

This witch economist wants banks to have enormous profits to keep the financial sector healthy and expand their production and payroll. How many traditional giant corporations failed? Did you notice any difference between then and now?

Fool economist?

None of these make sense. Because these fool economists completely misread the real issues. Either, it is intentionally or unintentionally, I still believe the major players/crooks economist contribute to this negative agenda of their own rules. The majority of the major financial markets is rigged. 

Doomed characteristics?

Characteristic of science is predictable, repeatable results. Yet these witch economists failed (or blind) to foresee the incoming 2008 financial crisis, and the failure to oversee the consequences of zero interest rates, limitless liquidity and pushing the household and enterprises to borrow more and more of cheap money. Who is the biggest beneficiaries? 

Absolutely nothing has been done?

Was anything done to reverse the soaring cost of everything? How about financial reform? Did they abolish the too big to fail entities? Or it simply enable them to prosper at the expense of the consumers? 

Five years on, and the growth is extremely anemic, and no honest observer can't deny the reality that the recovery is so fragile and depends on free money that any normalization- raising interest rates, the ceasing Federal Reserve QE and the reducing of the massive Federal deficit will immediately toss the economy into deep recession and trigger the collapse of stocks and bonds. 

Consequences of free/cheap monetary policy. 

The massive amounts of free money flooding the entire global economy, sparkling the orgy of investment and consumption in emerging economies resulting in strong growth in emerging markets. All these are at risk of reversal. Given the  systematic problems in the European market, this five years of fantasy could reverse. Will it be now?

The factors are worth mentioning. Some of these corporate governance and profit results for dodgy accounting and not actual net profit. Most of the rise in stocks can attributed to corporate buy back where the corporate borrowed billion of dollars for next to nothing and then buy back their own shares and driving share prices higher. Will this sustainable forever? 

Conclusion of the five years fantasy. 

The five years of fantasy that the free flood of cheap money is drawing to a close. Why can't the fantasy runs forever? Diminishing returns. This pattern of diminishing return from all the fake fixes can be found in every nook and cranny of the global economy. 

Since these monetary and fiscal policies didn't address the real issues, all they can do is to increase the magnitude of the next collapse. It's just a matter of time it will happen. But when? How many middle class will be affected again?And now they begin to lift the US dollars.... Another game waiting to be discovered at our expense yet again. 

But again, the well prepared people will survive this coming repeated episode of mismanaged economics.

I sincerely wish I am dead wrong. And hope the fantasy to be continued for another quarter or more so......

• Only one thing that is guaranteed, the law of gravity.

• Only one thing you need to do, know what you owned.

• Only one thing you must know, your limitation.

Till then. 

P/s: One of my friend and his wife was forced to sleep in their car till 2012. How great is the magnitude?  Ask those affected. And they're betrayed by the policies makers. To be greed when others are fearful? It depends on how many houses and cars you have and whether you are still having your paycheck....if you are lucky when the fantasy reverse it's course.