Amid all the hype and excitement one feels when they see headlines like: Bullish U.S. Stock Buyers Are Positioning for a Giant Windfall
• Equity options strategy could deliver a 13-fold return…
• …If the S&P 500 gains another 11% by the end of this year
I also have an answer and it’s an unpleasant one. Because by bailing out markets and economies at every sign of trouble over the past 10 years, central banks have given politicians license to do nothing. And nothing is what you get as political discourse fragments and majority solutions are impossible to come by.
But not only are majority solution impossible to get, nobody even wants to even talk about them. Why? Because they involve pain. Voters don’t want to hear pain. Hence all you hear is free money. Tax cuts in 2016. Now we hear free college, health care and debt forgiveness for 2020 and, who knows, maybe more tax cuts.