QOTD = Quote of the Day

Will Rodgers was way ahead of his time.   

His quote defines the group think of today’s marginal buyer with the qualification that stocks always go up.  Well, at least, most of the time as the holding period time horizon expands.

Don’t gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it. – Will Rodgers

The Corner Solution End Game

Mr. Rodgers lived and suffered the consequences of the Fed’s grand failure to provide liquidity to failing banks – even the solvent ones — in 1931-32 that caused the U.S. money supply to contract 25 percent and put the “Great” in the Great Depression. 

Now the Fed has swung to the other extreme and seemingly provides liquidity to the markets every time the S&P, say, drops 10 points.   As a consequence, a “muddle through” scenario has been taken off the table, and the end game will be a corner solution, 

Corner Solution

A solution to a minimization or maximization problem where an interior solution is infeasible. –  definitions.net

The U.S. economy is now so dependent on debt monetization and asset price bubbles there is no longer the potential for a soft landing.  It’s either fire or ice, hyperinflation or debt deflation.  We think the former. 

Stay tuned.