It's nothing more than all that. And it should come as no surprise at this late juncture that the masses are absolutely totally bought in to the delusion. Any honest debate on this subject would have to begin with two parties both willing to envision all possible outcomes - including life without trinkets, McMansions, shopping sprees, gas guzzling SUVs, supercarriers, Kardashians etc. However, this society is totally addicted to all of those things, so it has no ability to even conceive of life without them. It's not an honest debate to begin with.
A Magical Market: It Only Goes Up
This blog is a waste of time. I preach to the converted. No one else wants any part in truly understanding today's risks and the inevitable outcome. The reason why so many people are willing to throw their money into the same stock market casino that robbed them the last two times, is because for them the bet is double or dog food. And in their minds they have taken the dog food scenario completely off the table. It's totally unthinkable. After all, won't the game show hosts in leadership prevent that from happening? So really it's just about the double. And fortunately, this one is a magic market - it never goes down.
Bernankenstein Is A Master Illusionist
Bernanke is a very clever man, I have to admit. He has managed to convince the overwhelming majority of people - including today's self-nominated "best and brightest" - that all of this is real. His liquidity driven strategy to propel markets higher is an illusion for the ages. Of course, he hasn't done a damn thing for the debt-adjusted real economy - quite the contrary, he merely subsidized more debt. However, he has somehow convinced millions of people who were bilked previously by the exact same scam, to once again throw their life savings into this contrivance. The vast majority believe that the liquidity-driven rally is indefinitely sustainable. Bernanke's predecessor, Alan Greenspan, was known on Wall Street as "The Maestro". His best illusion was lowering interest rates to 1% after 9/11 and conning millions of Americans to take low interest, adjustable rate mortgages. Then he raised interest rates 17 times in a row, obliterating anyone who took advantage of the cheap money. What can Bernankenstein do to top that? Stay tuned for the second act, it will be spectacular to say the least...
FOMO: Fear of Missing Out
Yesterday, another skeptic capitulated, yet the latest casualty of the Bernanke Illusion. So far - off the top of my head - Rosenberg, Grantham, Kass, Roubini, Soros. We should fully expect that EVERYONE who manages other people's money is either out of business right now or fully on board with the rally. It's been that kind of ordeal. In fifteen years, there has been nothing like it, as I showed in my previous post. However, in these capitulations you can see plain as day, the malincentives that survived 2008. Those who manage other people's money have to take ill-advised risks or lose their bonus, clients, credibility or all of the above. It's extreme moral hazard. Hendry says he is not worried about a market crash. That's right, because it's not your fucking money.
A Survival Level Event
Unfortunately, this isn't about saving face. I know I've been wrong for the better part of five years - with a brief reality check in 2011. However, this isn't about saving face or making my year end numbers. This is about realizing that something that is inherently bogus, immoral and unsustainable will collapse to the extreme shock of the vast majority. It's also about realizing that everything now is correlated to the downside - stocks, most bonds, precious metals, Bitcoin, home values, and most importantly jobs and incomes. So yes, it's ultimately about not wanting to eat dog food.
Unfortunately, the new Sodom and Gomorrah is far too invested in the status quo to even minimally comprehend the risks at this juncture. Therefore any attempt to convince them of said risks, is a complete and total fucking waste of time.
Been there, done that.
Life Without Prozac: How Do We Survive Indefinitely Without Income?
Two hikers are walking through the woods when they encounter a grizzly bear. The one hiker sheds his pack and prepares to run. The second hiker says, "what are you doing, you can't outrun a grizzly bear". The first hiker says, "I don't have to outrun the bear, I only have to outrun you".
To not get caught with one's head up their own ass when all of this melts down amid total anarchy and rage, will be a substantial head start.
Don't let it go to waste.
Two hikers are walking through the woods when they encounter a grizzly bear. The one hiker sheds his pack and prepares to run. The second hiker says, "what are you doing, you can't outrun a grizzly bear". The first hiker says, "I don't have to outrun the bear, I only have to outrun you".
To not get caught with one's head up their own ass when all of this melts down amid total anarchy and rage, will be a substantial head start.
Don't let it go to waste.
