It’s All Over But the Crying: “The Future Is Deleveraging”

The Maven  ( Original )
MAR 13, 2018

The stock market is still within a stone’s throw of all-time highs. Investors can still sell and get out entirely intact. When the plunge comes, it will likely be breathtaking in scope and speed, and all these many years of complacency will be vaporized in a handful of moments.

Economic pleasant surprises are in the past, as is the buildup of the balance sheet. The future is deleveraging.

Alarm bells are ringing. No one cares. By now, everyone knows stock only go up.

Stocks are tremendously overvalued. Some expect equities to decline as much as 67% from here.

Debt-deflation is on the way and gold will be the beneficiary. My definition of inflation may not be the same as yours. Mine is based on real-world economics, and we are in for a world of hurt.

Typically, rot starts at the periphery, then spreads to the core. Anyone remember subprime? Eventually, it all became subprime.

It's going to happen again.

ORIGINAL SOURCE: Synchronized Global Growth is Ending: Shocks Come Next by Mike Mish Shedlock at The Maven on 3/12/18