Ponzi World (Over 3 Billion NOT Served)

The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.

Friday, February 1, 2013

Dislocations

The headline yesterday was that the U.S. stock market had its best January since 1997. Given that risk assets have been almost 100% correlated these past several years, it's no surprise that the pollyannas "forgot" to mention that several risk assets are already trading below their January 2nd "fiscal cliff" gap open:

Apple - most overowned stock of this era

Gold - most overloved, over-advertised and overowned asset of this bubble cycle

Spanish stocks - canary in the coal mine for European stock markets

Junk bonds - gave back four weeks of gains in about three hours earlier this week

Other than that, everything is A-ok...