Those who think the meltdown in the markets is anything more than catalyzed by nuclear “meltdowns” in Japan (on the cusp of the toppling of some petty tyrants) are in need of some X-radiation on their brains to see what’s wrong (i.e. need to have their heads examined). There have been two liquid tsunami’s – one of sea water and the other of C notes – washing over the world of late. The damage revealed (and to be revealed) when both retreat is devastating.
The repatriation of investment capital to Japan only adds to the problem, but being a seller in such a rapidly and massively inflated environment is only logical. Why stick around and lose profits to the unlikely notion that a cash-fuelled, jobless recovery in an overly indebted developed world will ignite the reactors of sustainable growth?
The loss of life and property in northeastern Japan is beyond words and we must all consider what we can do to assist with recovery and rebuilding, and provide moral support. The question remains, however, which tsunami will cause the greatest financial damage?
Nevertheless, do not discount cheap money yet. We may yet see another wave that lifts boats anew before they come crashing, mangled, back to earth.
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