Hail the Flash Crash

Another example of the peculiar mindset of government regulators.  All one ever hears about are the creation of controls that would prevent another ‘Flash Crash.’  But what about preventing ‘Flash Rallies’?

If anything, flash crashes must be hailed as they correct the mispricing of securities and purge the malinvestments in the economy.  Imagine if the real estate market had a few flash crashes from 2004-06 that would have eliminated the totally overvalued state it ultimately reached.

What the market needs today is a flash crash in certain currencies such as USD and GBP, as well as of fixed income securities as interest rates should be much higher than they presently are, particularly so in the Western world!  Absent this, these adjustments will happen much more aggressively and suddenly in the future, that will exacerbate the extent of the crisis!

At the least, having more flash crashes would enforce some discipline on the central bankers who really belong in loonie bins for sending us down this path of ultimate currency destruction and vast societal impoverishment.

The focus on flash rallies will come.  They will come when the USD collapses good and proper and we hit limit up on stock markets day in and day out. Now that’s gonna be a crisis!