The Problem With Too Much Leverage
Courtesy of Karl Denninger of The Market Ticker
I know, I know, our equity bubble will be maintained forever by Ben and his "QE" games.
Well, then China should have a roaring equity market, right? They cheat, they lie, they permit all sorts of games, they have a command economy.
How are they doing?
Looks kinda like Japan did — and that's not so good.
That's coming here folks. I know, I know, you've been assured that it won't and that Bernanke can target equity prices and win this game.
I assure you that it will happen here and Bernanke will lose this gambit — and if you bet on it without adequate protection against a calamity in your portfolio, so will you.
