It Really Is Different (Again) This Time

Despite the seemingly generational destruction to household and bank balance sheets and an entirely unprecedented fiscal and monetary policy reponse, investors would never know it given the market’s reactions from the 2009 lows relative to its rally from the 2003 lows. Different this time? hhmmm… Worried about gold prices falling also? Doesn’t look like we learned anything from the ‘Debt Ceiling’ debate either…


S&P 500 – 2003-low rally vs 2009-low rally; unbelievable!

What is most shocking is the cataclysmic drop we suffered did nothing to quell the status quo’s belief that one more bubble will do it and save us all… This rally off the 2009 lows feels excessive (and is given the real backdrop) but is in reality not so different from the Greenspan-to-Bernanke handoff bubble that led to this idiocy…

Can we really kick the can one more year? Last time it was mega-securitization technical pressure that sustained credit support for equities with that last lurch higher – with yields already at record lows, leverage creeping up and spreads not pricing in any credit cycle, we suspect this time might just be different for the nominal value of the S&P 500…

(h/t Brad Wishak At NewEdge)

Gold – Debt Ceiling vs Fiscal Cliff


Charts: Bloomberg

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