After discussing the excitement around the Twitter IPO pricing yesterday morning, the market then brought back memories of the tulip bulb mania and opened the stock at $45. It is staggering to think that we can be living through this again after what occurred in 2000 and 2008 but here we are.
In more important news for the global economy, the European Central Bank unexpectedly cut interest rates yesterday from 0.5% to 0.25%. While the ECB has trailed the Fed, Bank of Japan and Bank of England in terms of being the most insane, it appears they are ready to try and catch up. From the ECB:
"We are ready to consider all available instruments, and, in this context, we decided today to continue conducting the main refinancing operations as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the 6th maintenance period of 2015, more precisely on July 7, 2015."
While central banks all prepare to try and debase their currency against each, precious metals have been beaten down in price, hated and now completely forgotten. It is the dream scenario for a long term investor.
David Stockman, former US budget official and author of The Great Deformation, discusses the madness of the world we live in today: