19,20,21….Faster, Faster

An organization representing the world's main central banks warned on Sunday that dangerous new asset bubbles were forming even before the global economy has finished recovering from the last round of financial excess.

“The temptation to postpone adjustment can prove irresistible, especially when times are good and financial booms sprinkle the fairy dust of illusory riches,” the report said. “The consequence is a growth model that relies on too much debt, both private and public, and which over time sows the seeds of its own demise.” [Central Bankers, Worried About Bubbles, Rebuke Markets, NY Times, 6/29/14]

Will we read in the future, “Central bankers warned of finance excess, illusory riches, and trusting in too much debt before the global financial bubble collapsed”? Should someone inform the President of the Federal Reserve of Minneapolis, Neel Kashkari, that his recent statement that “we are keeping our eyes open for asset prices to try and look for signs of bubbles” reveal he needs to read the plethora of warnings in global banking reports for more than two years now? Maybe after this 13-month stock bull, he should talk with former President of the Federal Reserve of Dallas, Richard Fisher who stated in January 2016, “We front- loaded an enormous stock rally”?

So when is enough, enough? When will more and more central bankers admit that

THEY have and continue to be the root cause of a system that “relies on too much debt” and short-termism? When will the industry and public at large admit we have been here before, only with far less debt?

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Time To Plan for The End of a Bubble?

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