This is from a[nother] reader of Agora Financial's Five-Minute Forecast. As you know, I like to make obvious points seem more credible by having someone else repeat them.
“Barton Biggs is no doubt a great moneyman,” writes a reader in response to a Biggs essay we published last Tuesday . “His assertion... ‘We must be pretty close to maximum bearishness’ sound[s] like... cheerleading, to me.”
“We’ve hit the point of maximum pessimism? The point of maximum pessimism can only be known in hindsight. People will get more and more pessimistic as their personal conditions/news get worse. If you are saying it’s not possible for people to be more pessimistic than they are now, I disagree. Whether or not they do become more pessimistic is another argument and will depend on what happens to them. (I have a couple of friends who left Liberia at the start of the civil war. They were really pessimistic then. In fact, I was so concerned, I recommended counseling, but they still felt they would be back in Monrovia before Christmas. Ha. Somewhere over the next five years, they hit their point of maximum pessimism.)