A nice piece by Mac10 on denial in the markets.
I have a theory that we can tell how close the next big correction is by the frequency, length, and passion of Mac10’s blogs. He’s been on a tear lately so he must smell blood.
Globalization is burying the Idiocracy one asset class at a time in broad daylight. This week, over-owned momentum stocks, overleveraged hedge funds, and European banks went under the bus. But they’re still pretending it’s not happening. They’re in denial about being in denial.
China, which makes everything we used to make, can no longer compete at $.80/hour, and now they have to devalue their currency. And in the meantime “we” tell ourselves that we’re the “best cappuccino makers on the planet”.