We have "bubbles, bubbles everywhere" and "this Cargo Jet is overloaded, has an engine on fire and is coming in for a hot landing." While "market psychology" is discussed daily here, on ZH and on CNBC et al few have ever actually analyzed the psychology of "the rogue trader." They've blown up banks. Can they blow up a Central Bank? They call it "legal heroin." Well...let's "think" about that for a moment. What is this "legal heroin"? Mine came from combat--long after you're body has been physically destroyed you still are fighting on. While far from identical i find it hard to imagine a "money man" wouldn't get "juiced" while turning over to the Treasury Department a cool 100 plus billion. Can he "take off the ring of power" however? My basic thesis throughout my arrival on SA is "the recovery is more dangerous than the depression." With the Wall Street Journal confirming the profits turned over to Treasury and the perils "exit strategy" the rules of "what a trader does when the market turns against you" apply. What is the downside loss should the treasury market actually be a bubble and "pop"? Well...let's just say "the Dem's thought they were bad and boy were they ever." Now they're gone and we have a mess with the head monetary authority "doing financial heroin." This can leave "more than a mess" shall we say and "having combat hardened infantry divisions nearby can come in handy in such times."
Disclosure: initiative matters in finance as well