In response to an FT article by Neil Hume on 7th February 2015, entitled 'BIS says financial flows partly to blame for oil collapse'
The 'casinoisation' of markets is the inevitable consequence of QE, ZIRP and the latest version of Frankenstein's monster - NIRP.
Despite the desperate attempts of central planners to abolish the business cycle, they may as well be attempting to make water flow uphill. Their theories are wrong - 'wrong' as in the world doesn't conform to the model, the map doesn't describe the territory.
There are consequences to everything. The consequence of hubris is denial and the consequence of that is always that the problem being denied gets worse.
If we manage to continue feeding ourselves and don't blow ourselves up, future historians will wonder how the 'elders' of this age thought that 'recovery' from a debt crisis might include a situation in which savers had to pay to have their savings warehoused for up to 7 years, whilst debtors were paid to take out a loan.
They may wonder how our tribal elders missed the clues being offered by situations like that. I suspect they will conclude that we are very clever, but not terribly bright. They will be correct.