Die “Titanic”-Analogie, die Sie noch nicht gehört haben | Von Charles Hugh Smith

2023-01-05

This dynamic–making problems much worse by forcing more of whatever worked in the previous era into a saturated, increasing unstable new era–receives little attention or understanding. Eras may last decades, and only those who’ve lived long enough to recall previous eras have experienced the transition from one era to the next.

2022-12-08

The only rational response to this reality is to opt out, lay flat and let it rot. In my previous post, The Bubble Economy’s Credit-Asset Death Spiral, I described the self-reinforcing feedback of expanding credit and soaring asset valuations and how the only possible result of this financial perpetual motion machine was a death spiral of collapsing debt service, collateral and credit impulse.