BitCasino: Canary in the Coalmine:
The hardest part about this bubble compared to other eras is that Central Bank money printing has driven risk asset correlations to 1:1. So it's been harder to prove that the impossible is not possible, which we all know is the Idiocracy's threshold of proof.
The Tail is Wagging the Dog
For those of us who are skeptical about printing money to buy insolvent assets, it's been an interesting descent into the Bonfire of the Insanities. That said, the global combined financial asset markets are somewhere north of $200 trillion in total value. Therefore, the Fed asset drip levitation programs are really nothing more than the tail wagging the dog. At the critical moment of "singularity", asset flows from the reallocation out of risk will dwarf the miniscule amounts that are inbound from the various artificial sources. We were just reminded today that there is no way out of the Hotel Californication for the vast majority:
"Exit Rule for Bubbles: you only get out if you panic before everyone else"
"On any given trading day, only a fraction of 1% of total market capitalization changes hands, and the vast majority of that is high-frequency trading and portfolio reallocation between existing equity holders."
BitCasino: Canary in the CoalMine
As I said at the top, we've had very little to hang our hat on with respect to social mood in this era aside from Russian saber rattling, Chinese saber rattling, Middle East meltdown, mass school shootings and various riots occurring across the globe etc. Beyond the boring fact that the impossible is not possible, we've been hard pressed to find indications that this could all end extremely abruptly:
Social Mood has Turned Down:
Only Central Bank liquidity programs and HFTBots didn't get the fucking memo. Yet.
