Complacency And Crash Correlation

There is a direct correlation between complacency and market crashes as well as size of the bubble and size of the crash. Given the ridiculous levels world and US stock and fixed income markets as well as industrial metals, the size of the crash will be one to be reckoned with.

Even Goldman which has lost its reputation by those who still foolishly respected it, rose today. This company will at the least lose a whole bunch of business both due to reputation and they will have to remain a little less fraudulent the next few weeks or months so as not to be completely shutdown. And as Goldman cannot make money without corruption and fraud, this company other than lying in its reports should disappoint in earnings. Of course they and the Fed could try to manufacture a small market downturn to scare the government off from shutting it down or auditing the Fed.