Genius or the opposite?
www.ft.com/content/e5fb...
13.03.2026 16:58
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Do they? or do they tell the government that if it wants them to buy more government debt, it needs to cut capital requirements?
We have a video game now
cc @hussmanjp.bsky.social @sheilabair.bsky.social store.steampowered.com/app/4366260/...
Maybe. I haven't seen much naked people for 18 years. And even in 2008, the leveraged banking sector complex got bailed out by taxpayers. The truth is that the higher the leverage, the better it is because you sideline with government interest. And the government is the biggest debtor of them all.
it makes perfect sense. The system is built that way. Money inflation is never neutral and actually heavenly redistributes wealth.
An 18 year old was born in 2008. They have known only QE. Mama @federalreserve.gov taught them that mana will print every hiccup. For God's sake, we have pensioners yolo 99% in equities because the real yield compression
madness. i can't do that.
The Fed lost its independence when it expanded its balance sheet to 36% of GDP
@hussmanjp.bsky.social
The only way is down
I wished u d write shorter pieces but more frequently in these crazy fast moving markets
That's what Trump loves.
I was there with John when we had junk bond freezing for 40 days and equity going down -20%. Then we had the Powell pivot and the rest is history.
www.wsj.com/articles/qua...
How a billionaire married into Estée Lauder family and who works for a billionaire trader Druckenmiller can help a young couple living in their parents home basement at 40 with children?
@hussmanjp.bsky.social
@sheilabair.bsky.social
1/2
Hey @sheilabair.bsky.social - welcome to BlueSky! Glad you’re here 🐳
there is a deflationary crash there somewhere in the future we just don't know when
soon
John, a friend and fighter against the Fed's cheap money joins forces in here
@hussmanjp.bsky.social
@sheilabair.bsky.social
John, I read this interview today (there is a transcript). It resonates with me. I'd like to know your opinions. I hope all okay. Have nice weekend Prof.
@hussmanjp.bsky.social
microcapclub.com/a-conversati...
Hero u go.
By the way, John I find your monthly market comments more insightful. No mention here of the role of cheap debt in margin expansion and the creation of monopolies, which are helped by asset collateral and can borrow cheaply.
@hussmanjp.bsky.social
youtu.be/L-hLVS_53NU?...
Platinum going parabolic with the car industry not doing great. I don't understand it. I'm too stupid.
Gold & silver ATH melting-uo
FX pairs breaking down
Long yields to multi-decade highs
Equities to ATH across all markets
I wish @hussmanjp.bsky.social would enlighten us because we don't understand what's going on
was always like this during bubble peaks?
-70%
it would take the S&P 500 down to around March 2020 level - It is not too bad considering we have been talking about a bubble since 2013
@hussmanjp.bsky.social mentioned 2/3 losses at least since 2017
Jeremy Grantham has written on his GMO blog
- 1 article on 2000 bubble
- 1 article on 2007 bubble
- 37 articles on the current "central banks bubble"
This is how long this bubble has taken to burst...
www.gmo.com/americas/res...
cc @hussmanjp.bsky.social
www.wsj.com/arts-culture...
"I do suspect that investors are unaware that they rely on this skewed equilibrium to be permanent".
PS 25 yrs waiting. But few times we had a recession without the gap closing in advance, i.e. 1991 and 2008. Recessions widen the gap.
cc @jessefelder.bsky.social @hussmanjp.bsky.social
Getting government money as your main customer is never a long term plan.
We are not even in a recession yet. How low can it go with a 10% unemployment rate?
I'd say the mirror equation has a lot of IOUs. Banks create new money, which shows as savings. Plus they create liabilities at the same time. But we should distinguish between real savings and fiduciary media. The equation can diverge so much only thanks to the fiat system @hussmanjp.bsky.social
Hard money will make them pay. Labour can't compete with capital as input of production under a fiat system. Plus hard money will balance savings & consumption, & their intertemporal link with future investments; avoiding excess industrial capacity, high debts and low savings. @hussmanjp.bsky.social
@hussmanjp.bsky.social knows that the cause is only one and is the manipulation of the cost of money by central banks. He can advocate for hard commodity money like Von Mises but is not fully embracing Austrian economics yet. After all these years of deranged Friedman monetarism. Puzzling for me.
