Thursday, July 10, 2014

The Globalization greedfest is ending. HALO Crash is on deck

Most people just assume that there will always be Third World factory slaves working for them in exchange for worthless IOUs
These new-fangled "socialist" accoutrements:  sovereign ponzi bonds, *special* dividends, stock buybacks are all compliments of Third World wage slaves and massive recurring trade deficits. Now the $25 trillion Financial Death Star 2.0 is already starting to implode and Skynet hasn't even had a system test yet.

"If the prior credit bubble – when too many loans were made helter-skelter by loosey-goosey loan officers before it all blew up in 2008 – was spectacular, this one is even more spectacular."

"The phenomenon has become reminiscent of the final ramp-up in lending seen in mid-2008, even as all heck was breaking loose in the financial sector."

"quoting sources of “senior executive” rank inside major US banks who “are privately warning” that the lending binge “should not be seen as evidence of an economic recovery. Instead, much of the borrowed money was used “to fund payouts to shareholders” via dividends and stock buybacks and to “finance acquisitions,” 

Greed is blindness. Panic crash is inevitable.
Five years later, and all new extremes in financial excess. Who would have believed back in 2008, that after just a few years, the morons at large would abandon all restraint and embrace mass stupidity all over again. These same dumbfucks who swore "this time will be different" at the depths of their despair in 2008. 

This time will be *different*:
Back in 2006 real estate peaked. In 2007 stocks peaked. In 2008 credit peaked.
However, this time they are all peaking at the same time. There is no *warning* other than the fact that the impossible is not possible. There is no warning other than the fact that absolutely nothing changed since 2008. There is no warning other than the fact that ETraders piled back into stocks despite an ever-deteriorating economy - creating their own momentum feedback loop consisting of a pile of morons assuming ever-more morons would follow. Their own private circle jerk. There was no warning, other than Third World factory slaves jumping off of buildings because they get paid 10 cents on the dollar to do the exact same things we used to do, but in medieval conditions.

Globalization is the largest financial underwriter in human history 
The Faustian Assumption: "It can't happen to me"
Even at this late juncture, the vast majority still haven't stopped to ask themselves where do 0% interest rates come from? They think that the Fed can create 0% interest rates out of thin air and print money with absolutely no sign of hyperinflation. They never stop to question where the cheap junk from Walmart comes from year in and year out and why wage slaves in the Third World never catch up to our wages. Apparently, they are blind to the poverty being imported from the Third World one container at a time, even as their own household debts grow and their own net worth turns deeply negative. The fact is that without the recurring trade deficits, job losses, and economic deterioration driving continual wage deflation there would be no 0% interest rates. No McMansions, no *special dividends*, no sovereign ponzi bonds and a lot fewer billunaires and RomneyBots. Fate tempted the masses to go all in on the Faustian Assumption, and they did not disappoint in the least. The 2008 wake up call was fully ignored. Occupy Wall Street was ridiculed.

This will be the last bubble iteration. All the king's dunces couldn't put Humpty Dumpty together again. 

Globalization is toast.