Thursday, February 20, 2014

Helter Skelter / Rich Man's Panic 2014 Edition

If it seems like things are starting to spin out of control, it's because they are. For anyone who is not hypnotized by CNN and Faux News, it's becoming readily apparent that things are coming unglued...

I just got my daily dose of Doom from none other than the community newspaper. Normally that paper goes from the driveway straight into the recycling bin, but this time I noticed that there have been a spate of recent grisly crimes right around my area. These crimes were so heinous that police are at a loss to explain them. I won't even repeat them here, since one of them involved small children and a meth-fueled attempt at an "exorcism". Probably the least offensive one involved a 7-Eleven clerk stabbed 76 times. All were ascribed to mental illness.

Zerohedge keeps us informed on the latest banker suicides about which I won't comment on other than to say that it's only the very beginning of that trend; however, no major news outlet has addressed the spate of College campus shootings that went parabolic late last year and continued into January. When I just googled the topic, "school shootings news", the only recent article that came up was this Faux News ass wipe rationalizing why the recent spike in shootings is nothing to worry about. Keep up the good work.

The Hunger Games Economy
Just last night Walmart couldn't even meet their revised-down guidance, so the stock got hit again today. Ferrari is reporting all time record sales, but the lower 90% can't afford to buy cheap junk made in China anymore. In that Walmart article that I linked, here's the best quote:

"Much like its low-income shoppers, Wal-Mart can't seem to catch a break as the U.S. economy rebounds."

Consider that quote today's installment of "Dude, where's the economy?", as yet one more lamestream dumbfuck waxes eloquently about the totally non-existent "recovery".

The Bonfire of the Vanities
Clearly we have crossed the rubicon. Our so-called "elites" have laid a bonfire of anarchy so massive that it defies all description. 

First they shrink-wrapped all employees turning them into corporatized disposable widgets. Then they outsourced all of the jobs. Then they robbed families of their incomes while throwing them a lead "lifeline" consisting of cheap debt. Twice now they've cut back on foodstamp aid, which for many families is their only way to feed their kids.

No surprise, all of this has caused mental health to collapse like a cheap tent, propped up merely by psychosis-inducing pharmaceuticals and abetted by massive doses of highly addictive junk food turning people into human toxic waste dumps. Real live zombies. 

Meanwhile, in the background, the stealth buildup of guns and ammunition has continued at a frenetic pace. A fully automatic machine gun now costing as much as a well-equipped luxury sedan

Is there anything else we can do to amplify risk?  Nothing comes to mind.

The most amazing aspect of all of this is that social mood is still elevated. Via the stock market, we see that speculators are still reaching for the sky with their Facebook and Tesla and whatever other junk stocks they can find. The Dow peaked way back on December 31st, but the lowest quality Nasdaq stocks are still running and gunning.

As I said before, Bitcoin is a harbinger of the future and I won't even bother showing that chart anymore, because it has turned into a total fucking disaster. Now down 90% from the all time high on the largest exchange and down 50% on the next largest exchange, heading ever-lower.

Wait until the Dow rolls over for real. Holy fuck, it's going to get crazy.

Rich Man's Panic 2014 Edition
The original "Rich Man's Panic" took place way back in 1907, it was thusly called because it had an outsized impact on the ultra-wealthy and like all panics it came along very unexpectedly. Today's panic will be very similar. It will disproportionately hammer the ultra-rich since they've already financially dismembered everyone else. Meanwhile, as Paul Farrell indicates, it will strike quickly and totally unexpectedly. Today's ultra-wealthy are fat and happy buying Ferraris and mega-yachts and telling everyone that prosperity for the masses is just around the corner. Not that corner, the other corner. Just as I wrote way back in 2007, the power of greed, is overwhelmingly blinding. And today's ultra-wealthy are the greediest fuckers this side of 1907. They are fully blinded.