Investing.com: The Market Crash Nobody Thinks Possible, Is Coming!
Article by Charles Hugh Smith in Investing.com
The ideal setup for a crash is a consensus that a crash is impossible--in other words, just like the present: sure, there are carefully measured murmurings about a "correction" but nobody with anything to lose in the way of public credibility is calling for an honest-to-goodness crash, a real crash, not a wimpy, limp-wristed dip that will immediately be bought.
What I'm calling for is a rip your face off, weeping bitter tears over the grave of the speculative wealth that you thought was forever crash.
All those buying the dip because the Fed will never let the market go down will be crushed like scurrying cockroaches and all those trying to rotate into the next hot sector or asset class will also be crushed like scurrying cockroaches because when the Everything Bubble pops, well, everything pops. There is no shelter in a risk-off cascade.
The crash is coming as a result of multiple mutually reinforcing dynamics, the first being that no "serious person" believes a crash is possible, much less imminent.
In no particular order, here are a raft of other causally consequential triggers of a cascading market crash:
1. As I noted in my call for the top, Is Anyone Willing to Call the Top of the Everything Bubble? (Sept. 6, 2021), there is no history to support the widespread confidence that the extremes of over-valuation, leverage, euphoria and speculation last forever, or even much longer than the lifespan of a cockroach. We're well past that benchmark into unprecedented insanity. So what happens next: squish!
Just for the record, the Dow topped out on Aug. 13, the S&P 500 topped out on Sept. 2 and the NASDAQ topped out the day after my call, September 7.
2. The credibility of the Federal Reserve is in the dumpster, which just caught fire. As I explained in The Fed Is Fatally Corrupt-- And So Is the Rest of America's Status Quo (Sept. 10, 2021), the Fed is corrupt on multiple levels--thoroughly, completely corrupt, and so are all its minions, proxies, apparatchiks, toadies, apologists and lackeys.
This is finally leaking through the Fed corruption containment vessel as even the lackeys in the billionaire-owned corporate media are now fearful of losing whatever tattered shreds of credibility they still possess by refusing to acknowledge Fed corruption, over-reach and hubris. And so at long last, the Fed no longer walks on water. The Fed's fraudulent travesty of a mockery of a sham scam has finally breached the three-foor thick containment walls and the putrid stench of Fed corruption can no longer be bottled up.
Like any good kleptocratic Politburo, the Fed cashiered the two most indefensible scapegoats to divert attention from the equally corrupt incumbents presiding over the collapse of Fed credibility. Don't be surprised if the scapegoats are airbrushed out of official photos, per officially approved propaganda.
3. As I detailed in The U.S. Economy In a Nutshell: When Critical Parts Are On "Indefinite Back Order," the Machine Grinds to a Halt and Sorry, Fed, Inflation is Already Embedded, the fuel of the inflation rocket has just ignited and ......
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