John Hussman's presents a message no one wants to hear because nearly everyone is too busy believing for the third time in 17 years that "It's different this time".

Last week Hussman wrote about Valuations, Sufficient Statistics, and Breathtaking Risks. This week it's more of the same with his post Behind the Potemkin Village.

The markets are so overvalued now that Hussman expects a 60% decline from here.

There's an apocryphal story that in 1787, during the journey of Empress Catherine II to Crimea, Prince Grigory Potemkin, the governor of the region, erected fabricated villages along the Dnieper River, which would be disassembled after she passed by, and rebuilt again downstream overnight.