Bill’s Commentary:
“It’s different alright… never before has so much leverage been piled on just to abort mild corrections. Assets MUST inflate or the system dies from deflation. It was true in the 1950’s when Richard Russell coined the phrase and still true today…”
The Permanent Distortion Theory
“This time it’s different” is supposed to be the dumbest phrase in investing.
It’s the phrase people use right before they get obliterated. It was the rallying cry of dot-com lunatics buying companies with no revenue in 1999. It was the intellectual foundation of housing perma-bulls in 2006 who believed home prices could only go up because, apparently, Americans had collectively decided real estate was immune mathematical reality.
It’s typically what people say when they’re trying to justify paying absurd prices for dogshit assets while pretending the laws of valuation have been permanently repealed: “this time it’s different”.
Which is why it’s deeply annoying and borderline humiliating for me to admit that this time, it actually may be different.
The latest from USA Watchdog – Bill interviewed – (Also posted under Interviews)
BillHolter.com 
Thank you pamelamoves@gmail.com
LikeLike