The definition of insanity is buying the exact same bubble over and over again, each time expecting a different result.
I have no doubt in my mind that when this last supernova explodes, investors in every risk asset class will have very little to show for it. It took three weeks last year for global central banks to get markets under control. This time their job will be compounded by the record leverage that has been added in the meantime. Their first order of business will be to get sovereign bond markets and global currencies under control. By the time they accomplish that herculean task, they will look around and realize everything else has already exploded. Home gamers who believe that central banks are invincible will come to find out that margin clerks don't share their views.
Central banks print the money that inflates all of the various bubbles. Those who buy into these lethal bubbles pay the true price in over-valuation. When the bubbles burst, the bagholders invariably lose most of their money. Those lucky "insiders" who are selling stocks and Bitcoins to the general public, usually put their money in another over-valued asset class such as corporate or municipal bonds. Japanification proves that ironically the only "safe" asset class is the one that yields NOTHING aka. t-bills. And yet, very few people in the U.S. are willing to earn nothing on their money. The Japanese learned the hard way that it's better to protect principal than to pursue illusory zero sum gains. The very prevalence of zero interest rates signals ZERO economic growth in the future. And yet due to the alchemy of finance, today's Ponzified financial "gurus" have seized upon zero interest rates as being "free money" for speculation, better yet, allowing for infinite valuation. Proof that this society is now an Idiocracy.
When this all explodes, many people will blame central banks for creating this contrivance. What they should be doing is blaming themselves for believing in it. All of these asinine ideas have been tried and failed already in Japan for thirty years straight. Central banks have Ponzified every single asset market and turned them into 100% zero sum games. This society doesn't notice, because Globalization has propagated a global exploitation based culture of Third World values.
Ironically this magnitude of asset supernova has only been seen one other time in modern history. That was in 1990 Japan:
The Japanese asset price bubble was an economic bubble in Japan from 1986 to 1991 in which real estate and stock market prices were greatly inflated...The bubble was characterized by rapid acceleration of asset prices and overheated economic activity, as well as an uncontrolled money supply and credit expansion. More specifically, over-confidence and speculation regarding asset and stock prices were closely associated with excessive monetary easing policy at the time.
"At their peak, prices in central Tokyo were such that the Tokyo Imperial Palace grounds were estimated to be worth more than all the land in the entire state of California"
In summary, the Bank of Japan didn't set out to take over the bond market nor did they set out to become the nation's largest shareholder. Nor did they set out to become the de facto "economy". However, the populace always demanded an easy way out of economic reform. It was not a "conspiracy" of the elites, as so many idiots suggest is driving the Fed actions of today. These people have conflated a profoundly corrupt populace bounding down the road to economic Perdition, for Bill Gates' master plan. Historians will place the blame for all of this insanity squarely on an education system that churns out fucktards by the thousands where they can be monetized by opportunistic sociopaths.
Those who think that the U.S. is any smarter than Japan, are in for the shock of a lifetime. After all, who is the greater fool, the fool or the one that follows?
