Tim Knight of Slope of Hope, a technical analysis site, has an interesting piece about the immediate spot of housecleaning likely to result in the wake of the forthcoming bit of market bumpiness. Well, to be precise, he describes this as a “financial cataclysm” brought about by the modern American religion of kissing every boo boo in this vale of tears.
We have not had an honest-to-God bear market in ninety years. But what about 2008? Or 2001? Or 1987? Yeah, yeah, the market went down, it’s true, but in every single down-market since the 1930s, the federal government has intervened to stop the bleeding. The natural, organic, and marvelously healthy process of a sweeping financial cleaning hasn’t been permitted since the days of FDR, since the nanny state government feels duty-bound to spare its citizens anything that might hurt even a little bit.
So it’s not looking good he thinks because of the accumulation of froth and he has written an entertaining article about “what segments of our society will be purged when the dust settles.” Or the federal punch bowl is taken away.
It’s an interesting list. Adios to froth, hype, cuteness, and billion-dollar parsley conglomerates. Recommended.
Notes
[1] “Scheduled to be Slayed.” By Tim Knight, ZeroHedge, 4/30/22 (bolding removed).
