“The point of the article is basically ‘look, we’ve spent the last 3 or 4 years trying to make investing, which is a risky business, dumbed down for retail investors’,” I explained.
“If there’s one piece of nefarious patronizing lingo that I hear every year it’s the idea of a ‘Santa Claus Rally’ – just another bullshit term made up by the financial media to further the Keynesian monetary policy experiment as if it is some virtuous undertaking that is never going to end poorly. It’s terminology that tells people it’s OK and normal for markets to only go up.”
I added: “That kind of stuff does a disservice to amateur investors.”
“The same monetary policy experiment that the media is trying to legitimize and encourage is the same policy that got us into the current crisis that we’re in,” I said.
I continued: “Rather than celebrating it and passing it off as some raging success, I think people need to recalibrate themselves and understand monetary policy is why we’re watching Sam Bankman-Fried blow up and incinerate people’s cash. The Fed sent a behavioral incentive to markets that speculation was fine for way too long – a signal to markets that there was no risk when, in fact, risk was everywhere.”
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