While at least part of the recent plunge in equities can be
directly tied to the coronavirus and it's definitive impact on
economic activity, one must also be mindful of the explosion in
debt and be mindful of any cracks in these markets in the bigger
picture. I'm not smart enough to predict how things unfold but all
the monetary policy, sovereign government debt, and even corporate
debt is troubling in the bigger picture. The video below from
Ray Dailo gives a good overview of how the Economy functions and
the debt cycle.
I think the rotting roots underneath are starting to give way.
Trees are starting to fall in the forest. As
long as we keep a close eye on ball and have the right bias to
the markets, we can all profit handsomely. Recessions
make millionaires. It washes out all the bad actors and bad
debt. Like a massive Hurricane cleans the bottom of the Ocean
but a lot of wreckage short term.
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General Comments
Posted by steve on 25th of Feb 2020 at 06:16 pm
While at least part of the recent plunge in equities can be directly tied to the coronavirus and it's definitive impact on economic activity, one must also be mindful of the explosion in debt and be mindful of any cracks in these markets in the bigger picture. I'm not smart enough to predict how things unfold but all the monetary policy, sovereign government debt, and even corporate debt is troubling in the bigger picture. The video below from Ray Dailo gives a good overview of how the Economy functions and the debt cycle.
https://www.youtube.com/watch?v=PHe0bXAIuk0
I think the rotting roots
Posted by ssaffer on 25th of Feb 2020 at 06:35 pm
I think the rotting roots underneath are starting to give way. Trees are starting to fall in the forest. As long as we keep a close eye on ball and have the right bias to the markets, we can all profit handsomely. Recessions make millionaires. It washes out all the bad actors and bad debt. Like a massive Hurricane cleans the bottom of the Ocean but a lot of wreckage short term.