Postcards: How I Learned to Stop Worrying and Love the "Bailout"

Today, I’ll show the only tool you need to call a deep market bottom and come out wealthier on the other side of this China/U.S. bond crisis.

Dear Fellow Expat:

The Wall Street Journal warns China could soon face its “Lehman Brothers moment.”

It’s a call back to the defining calamity of the 2008 Financial Crisis.

That “moment” was the long-expected collapse of one of Wall Street’s oldest and most-connected banks. It was a slow-moving drama - before Netflix binge-watching. For 18 months (what could easily become three seasons of a riveting show about awful people), Lehman did everything wrong to avoid its inevitable demise.

The finale was a decision by the U.S. government (and a Treasury Department run by the former CEO of Lehman’s rival bank Goldman Sachs) to go bankrupt with no financial support (or last-minute bailout) on September 15, 2008.

U.S. leaders thought they’d accomplished something the day after the bankruptcy.

But things quickly went wrong and stayed wrong.

The results were a paralyzed global credit market, a massive bailout of corporate America, and the eventual zombification of the financial markets over the last…