It 'feels a bit like 2006' for stocks and the economy. That should scare us.

[DonViejo]

By Heather Long January 30 at 10:27 AM

The world's elite are partying like it's 2006, and that should probably scare us. Top business and political leaders, who met last week in the quaint ski chalet town of Davos, Switzerland, couldn't stop talking about the booming global economy, record stock markets and President Trump's tax cuts. They toasted the good times with bottles of bourbon that cost several thousand dollars each. But there is something unnerving about all of this: 2006 was followed by 2008, the worst financial crisis of just about everyone's lifetime. Some of the wisest minds at Davos said it feels eerily similar right now, and that's not comforting.

“The biggest concern I have is no one thinks there's a chance of a recession this year or next,” Carlyle Group co-founder David Rubenstein said. “The conventional wisdom is usually wrong.”

Harvard economist Kenneth Rogoff said, “I’ve never seen it so complacent. I mean never.”

Citigroup chief executive Michael Corbat noted, “My biggest concern is the market is ignoring all the risks.”

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https://www.washingtonpost.com/news/wonk/wp/2018/01/30/it-feels-a-bit-like-2006-for-stocks-and-the-economy-that-should-scare-us/

[Caliman73]

1. What is the definition of insanity?

I think that the richest people are partying because they think (and they may be right to an extent) they have found a way to lock in gains and socialize losses. For them, there are guarantees that they may not make as much, but they will not lose the shirts off their backs like other people in the market.

While Obama's slow recovery continues to eek out decent financial growth, the underlying problems with our economy and the economies of the other industrialized nations, were never really addressed. All of this faith in the markets is really ridiculous when you think about how markets have been manipulated throughout history, and have risen and fallen in a relatively predictable pattern.

The Davos crowd could not care less because they continue to devise ways of protecting themselves and it usually involves using non wealthy people as an insurance policy.

[Wellstone ruled]

2. We appear to be at the same

point that our Nation was at in 1929. Same disparity in Corporate Tax Structure and Personal Income Tax Structure.

What could go wrong with that idea?

[MiniMe]

3. I was thinking like 1929

[Blues Heron]

4. 2006 was followed by 2008

Wait wut

[NickB79]

5. Flock of black swans on the horizon.....

[Lisa0825]

6. Two words keep coming to mind.... "Irrational exuberance." nt