zerohedge.com / by Tyler Durden / Feb 12, 2017 1:15 PM
“And some things that should not have been forgotten, were lost” – The Lord of the Rings
“Are you ready for greed?” asks Morgan Stanley’s Andrew Sheets in his Sunday Start note, in which he compares the current market situation to the early days of 2007, when the first harbingers of the financial crisis emerged (recall “10 Years Ago Today, The Financial Crisis Started With An Announcement By HSBC“) and when early warnings that it would all end in tears were roundly ignored for almost a year, all because of – you guessed it – a resurgence of greed.
“It’s happened before. As TABX cratered and credit markets wavered in early 2007, the S&P 500 went on to make new highs, not peaking until October. Greed is a powerful force. We are trying not to forget that.”
Morgan Stanley notes that after the crisis, greed became an anachronism as animal spirits died along with a wholesale shift in investor mentality: