Thursday, March 07, 2013

Bubble, bubble... toil and trouble...

The markets are where they are for one reason only, just one, the sea of money that the central banks have poured out across the globe. There is no other reason. Money flows into the corporations, money flows into the markets and the tide rises because it must but it is a House of Cards, a dangerous game that works because there is no place else to go with money and the euphoria, New Year’s Eve at the Big Casino, continues but the price will be high when it all ends and it will end because it is not this or that asset class that is in a bubble but the entire world that is a giant soap bubble that will float until the heat of the sun pops the thing in one ugly mess. I fear that subprime loans, dot.com fantasies, and the S&L crisis will pale when we are done with this party because, my friends, the bill for the festivities must get paid. Watch the hat; the rabbit will be coming out soon.  (Devaluation, Zerohedge)

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