It is unreasonable not to expect crises. A credit expansion produces credit deflations. Always has. Always will. We’ve seen them in housing and oil – despite a worldwide commitment to expansion on the part of the authorities.
Since there will be crises… there will be responses to crises. I’ll quote Odey Asset Management’s Crispin Odey, who runs the famous $12 billion AUM fund. We are entering a recession that “will be remembered in 100 years,” he says. Equity markets will be ‘devastated.”
Yes. And then the Fed will be drawn into even greater rescue efforts, followed by more booms… more busts… bigger than ever… until the final wave hits. And then, the lies are washed away… How does it all end?
That was the question Bill left everyone with as he concluded his speech at the Family Wealth Forum in Rancho Santana recently. Bill lives in constant expectation of a “Moment of Truth.” We’d love to hear your thoughts…