‘Faith that central banks have everything under control has been broken…’

Credit Bubble Bulletin/Doug Noland

graphic image collapsing house of cards“Confidence has been shattered. Faith that central banks have everything well under control has been broken. Myriad fallacies have been exposed. Central banks can’t guarantee liquid markets, especially in a Bubble-induced highly levered speculative environment. The entire derivatives universe has been operating on the specious assumption of liquid and continuous markets. History is unambiguous: markets experience bouts of illiquidity, dislocation and panicked crashes. The fantasy that contemporary central bank monetary management abrogates illiquidity and market discontinuity risks is being debunked. The mania in finance has, finally, run its course.”

USAGOLD note:  Noland goes on to describe a great unraveling not unlike what Strauss and Howe warned about in The Fourth Turning (and Howe continued to warn about after its publication). “Covid-19,” says Noland, “has let the genie out of the bottle.”

Repost from 3-22-2020

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