House of Paine

the bubble spank : a threat or a promise ?

here below find 
a recent
  greenscum 
          boney rendering
 of a  stylized story 
of 
     asset price dynamics :


=============================================  




green thang:

"after a protracted period
of low risk premiums "

---------risk premium?

the compensation 
  for possible loses
(ie risk baring)
 "the market" demands 
      as part of
 the expected
  " total  return"
        of an  asset ---------------

"Any onset 
of increased investor caution
 elevates risk premiums 
and, as a consequence,
 lowers asset values "

--------then this
   "promotes"
            tah  tah.... -------------------

"the liquidation 
of the debt 
that supported 
these higher asset prices"

------- ie
  we crediteers 
 pumped it up 
now we'll drain it out---------- 

---------- 

ah how these mellon-omas 
love the words
"liquidation of debts" 

comrades 
   only one "liquidation" 
rings sweeter to cleo .... 

tah  tah  taaaaaaaah --------------------

------- back to soilent  green spill

after the risk premium
 riseth
then  cometh....

well 
  the understated
 ultra  murky 

           threat ...-----------------

"  history has not dealt
  kindly 
with the aftermath 
of protracted periods 
of low risk premiums"

oh by the way

greeny
calls the 90's 
and even the 00's 
  a period of....

"protracted  periods
  of low risk premiums
     with consequent rising prices
have passed
like  giant  waves
 thru  one asset  type
        after another 
                 most recently...
                        the familly home "



-----------



so whats this about?

what else

once filtered thru the press amps 

a tale of future 

horrors at  hearthside 

  ain't
it all about
 keeping small fry scared ?


and 
after all 
this is the guy
         who claimed

wage increases 
were moderated 
in the late 90's
  by "increased 
fear of the sack ......"

his source :

two surveys

one in 82 and another in 97

sack fears had risen 
from 18% 
of responders 
             to 37%

"okay boys lets see 
if we can get that number 
up over 
   50%  ..."