Worth a read…
From Peter Reagan at Birch Gold Group
After almost 15 years of Fed-fueled cheap money offered at near-zero rates that was leveraged into overinflated speculative bubbles, the lights are on, the crowd is dispersing – and the party might finally be over.
At an actual party, it’s easy to know when it’s time to say your goodbyes. The hosts turn the music off, start looking at their watches and taking away the snacks.
In this metaphorical party, though, how do you know when it’s over?
Analysts describe the end as a “Minsky Moment,” defined as:
the onset of a market collapse brought on by the reckless speculative activity that defines an unsustainable bullish period. Minsky Moment is named after economist Hyman Minsky and defines the point in time where the sudden decline in market sentiment inevitably leads to a market crash. [emphasis added]
The two most important words there, I think, are “sudden” and “inevitably.”
Experts from JP Morgan think the moment is now:
Read it all HERE