For any of us that hoped people might have learned a little wisdom or self-preservation bias from the pain of the last two equity market implosions…we would be wrong. Emboldened by taxpayer bailouts, market participants heading into March were more highly levered than at any other time since this secular bear began in in 2000 (red line below).
Amazing, but not surprising to see, that after trillions of dollars tossed into the banks (money that was desperately needed in infrastructure, energy, education, food and water management, etc) market participants today have less net equity at the end of February than ever before, graphed here by dshort.com.
We can all thank central banks and Wall Street-subservient politicians for all they have done in helping to prolong and magnify the most unfavorable, dangerous investment climate in history.
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