The Death Of Hopium
The party isn't entirely over, but you can hear someone shouting "last call."
Perception and sentiment aren't just about the numbers, they're about the vibe, the "feel" of things. What's being talked about in the hallways, at the trendy coffee bar, or voiced behind conference room doors. And the tenor of that vibe has suddenly become a lot more off-key.
So sentiment is shifting, but it's early on in the process. Like a ball tossed in the air that reaches its apex, it reverses direction slowly at first, but then speeds up with rapid acceleration.
We are likely seeing the death of one of the great confidence-supporting memes of the past 7 years -- the unstoppable virility of the stock market -- as it unravels over the next year and a half. This in-turn will remove one more of the dwindling number of pillars supporting the 'master plan' our central planners have been claiming is necessary for stabilizing the global economy.
Once the public's faith is shaken, how far behind will its faith in the Fed follow? How quickly will tolerance of further taxpayer-funded welfare programs for our big banks evaporate? Or of the cronyist revolving door between DC and Wall Street? Or of more policies that expand farther the wealth gap between the 0.1% and everyone else?
Change happens quickly once beliefs shift.
How shockingly little we learn from history.
Not ancient history, mind you. We saw this movie play out just 7 years ago in 2008. And that took place 8 short years after the initial dot-com bubble burst in 2000.
As they say, "Those who cannot remember the past are condemned to repeat it".
Markets have degenerated into nothing but a steaming pile of hucksterism.
We're on the cusp of a major crisis here in America, one that's going to be much more severe, and longer lasting than what we saw in 2008 and 2009.