The Coming Crash Is Simply The Normalization Of A Mispriced Market

The correlation between the Fed’s monetary heroin production and the stock market will break down as the market normalizes.

In the spirit of calling things what they are, longtime correspondent Harun I. explains that market crashes are simply distorted/mispriced economies attempting to normalize. Here’s Harun’s commentary:
 

Let’s examine the term “crash.” A crash is nothing more than the economy trying to normalize, however, everyone seems to think the environment created by bubbles (unpayable debt) is normal. This is truly fascinating because accepting unpayable debt as a norm means that prices are irrelevant, and since prices are irrelevant, there is no risk. But just because we think a thought does not make it a fact. Interestingly, each attempt at normalization requires exponentially greater amounts of expropriation of purchasing power. 

Exactly, how does one grow one’s way out of this? To clarify the term normalize, I mean that the economy shrinks to a level of real and sustainable supply and demand dynamics.  Normalize does not mean “desirable” or “politically favorable.”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.