"At some future date, when pessimism rules again as it does from time to time, asset prices will decline. Outright moral hazard denial from our politicians and the companies who fund them in the name of "protecting us from a pandemic" is unconscionable. The notion of moral hazard is bad enough. So where exactly does it end now? Do you suppose $30 Trillion is enough? Nothing to see here, right? Come on, the S&P 500 was up a stellar 22.66% in 2021-what could possibly be wrong? As long as our stock portfolios keep going up, we'll just continue allowing our virtuous politicians to run with it while we all collectively look the other way. We all know this. "Three groups spend other people's money: children, thieves, politicians-all three need supervision," remarked another well-known economist recently. But here we are, just letting it keep going, unsupervised. fiat debt spending must come to an end now. As much as we've been trying to-especially since the COVID-19 pandemic-U.S. What Grantham is observing is the obvious truth that we can't money-print our way out of this. we are in the fourth superbubble of the last hundred years," is a good summary but do see the whole thing here. His entire thesis is both simple and well worth a gander. I just couldn't take being the most exuberant, ecstatic, even crazy investment advisor in the history of the U.S. Leave it to Jeremy to say it better than I ever could. Then, Grantham shares his analysis yesterday entitled Let The Wild Rumpus Begin where he writes, "we have the most exuberant, ecstatic, even crazy investor behavior in the history of the U.S. But after all, who was I to question the Fama/French Three Factor Asset Pricing Model orthodoxy describing 96% of market returns? I mean, good Catholics don't question the Pope, right? It was not easy, having grown that business to $300,000,000.00 in assets under management. Yesterday, Jeremy Grantham reminded me why I made the difficult decision to walk away from a lucrative profession as a fiduciary providing investment advice in October of 2019. lack of incentive to guard against risk where one is protected from its consequences.
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