I’m just going to post this fragment of a conversation I had with a colleague yesterday that left them both staggered and dumbfounded for the rest of our talk. It’s just one of those things we either fail to realize or, just put it out of mind forgetting to come back to it when trying to make sense of different happenings across society.
Question: “How do you think history will record these days of sheer lunacy?”
My Response: “Never-mind ‘history.’ How do you think most of the people that now occupy much of the management, executive and financial centers of business will respond should the ‘markets’ falter for any length of time, or worse, no longer go higher?”
“Currently, most of that set (i.e., say late 30’s) have never seen nor lived in a world without extreme monetary policy. Never seen a dip that was not bought, work in mega-capped companies that can’t even make a profit to support itself. The more “bad news” to hit the economy seems to propel the ‘markets’ ever higher, where they bank even more money. And if they’re having a ‘bad day’ those same companies that don’t make any profit spend enormous amounts of resources to provide them with ‘safe places.’ And better yet, if it’s too stressful to work? They can just stay home and collect more money via the government than working.”
“Let me wrap that all up for you in a pretty bow and have you think about it this way…
“Should the Federal Reserve try, once again, to pull back its extreme monetary policy like they have tried and failed prior, only to this time, double down in staying the course for ending extreme measures? The ‘markets’ are going to look and react much the same in analogous fashion as what you are currently witnessing in Afghanistan. i.e., replace Afghanistan with the ‘markets’ and those stranded and trying to get out with ‘investors $.'”
“Now, with that as the backdrop – try answering your own question for yourself and tell me, what do you think ‘recent history’ is going to prove out?”
I dare suggest many more should do the same.
© 2021 Mark St.Cyr
Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.