When is the penny finally going to drop (for the masses) that the GFC never really ended ?? The toxicity it created (or exposed rather) has just been sloshed around and "papered over" to create an illusion of financial fortitude that just doesn't exist in reality.
Rather , we are just in new phase of the same event , which will be known one day as something like "the great paper recovery" (now ending) followed by "the great recession" and perhaps "the next great depression"
You only need to ask yourself one question regarding this so-called recovery :
"Why would the markets sell off so hard every time the FED threatens to take away the stimulus ??"
The answer is simple - fund managers , professional investors/traders , the banks and anyone else thats been in the game long enough , knows that the stimulus is the only thing making the stock market worth investing in . It is the dam that is holding back the flood of toxicity that threatens to washout the entire economy again and again until the system get the structural fixes it really needs and reserves.
Surely a recovery is good for companies balance sheets ? increases earning? stronger consumer base ? etc etc...
.... meanwhile in the real world ....the effects of the GFC are being felt more than ever, as the benefits of the "paper recovery" end at the banks front door....
Gold will flip and flop for a while longer no doubt , but ultimately , it will remain the barometer of fiscal health. And things are looking very unhealthy indeed.
World economies are like an addict and stimulus is its drug of choice . Nothing is more likely to meet its ultimate demise , than a junkie that won't admit he's got a problem.
You can only vaccation in fantasy land, and the USA's visa is about to expire....
