LOL. I was going to say Cramer.
I`m ok with Simon. He asks smart questions every so often.
We are doomed to go higher until the rubber band breaks. History is repeating itself except that the ending this time will be outrageous by historical standards because of all the distortions (money printing/race to the bottom by central banks, bankrupt European nations, impending China implosion. A perfect storm of sovereign default is brewing, leaving nobody to bail out anyone.
It takes time and/or a triggering event to put things over the edge. Even some bulls acknowledge the long term problems, but they just cannot resist feeding at this risky table until they feel pain.
The pigs will not leave the feeding through until they feel pain.
When this ends, it will be like no other. We already got a warning with the flash crash. Now we have circuit breakers.
Circuit breakers could make things worse. Open, lock limit down-nobody gets a chance to sell. Open again, lock limit down. Then the fear of not being able to execute a trade sets in and the mother of all collapses happens in the briefest time in the history of the stock market and everybody rides it down.
All I know is QE has to end eventually. Unsustainable borrowing has to end eventually. Market loving low revenue increases has to end eventually.
Obamacare hits the fan next year and no economic consequences? People with any brains will be exiting before the unknown of Obamacare.
The first sign should be the market not going up on any "good" news. Maybe we are getting close to that now.
In the weeks to come they will be buying.
He said he would try to get his party to do what they don`t want to do (cut entitlements) in exchange for loophole closures. Somehow I doubt that is as simple or true as it sounds.
So what cuts worth 1.5 T is he talking about? Repubs keep saying he gives no specifics. I would think repubs would gladly hand over tax loophole closures for entitlement reforms.