This bull market will end badly
The Washington Post
“Another epic collapse is coming,” said George Will. It may seem hard to believe, particularly as the stock market this week officially notched its longest bull run of all time. But the more relevant milestone is Sept. 15: the 10-year anniversary of the collapse of Lehman Brothers, then the fourth-biggest U.S. investment bank. “History’s largest bankruptcy filing presaged the October 2008 evaporation of almost $10 trillion in global market capitalization.” The Lehman anniversary should serve as a timely reminder that nothing lasts forever. “Those who see no Lehman-like episode on the horizon did not see the last one.” The U.S. economy has grown for 111 months, but all expansions end. This one has been fueled by government spending, and when it does end, the U.S. will already be laboring under a federal debt of more than $1 trillion. People like Federal Reserve chairman Jerome Powell regularly tell us fiscal policy is on an “unsustainable path.” That really means that we’ve already sustained it too long and gotten used to the situation. The “political class, from left to right” prefers to run up deficits. They won’t be in office when it’s time to face the future voters they’ve saddled with the bill.