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.

Thursday, April 30, 2015

In Greed We Trust: The Fitting Way to End

Maximum shock and awe. Zero preparation.

The Fed has been bailing out risk markets non-stop since 1987:

Dow (black) with options implied volatility

Meaning they have incentivized extreme risk taking and minimal risk management (hedging). What used to be called "moral hazard". A concept that today's EconoDunces seem to have forgotten.

The $200 trillion bet now is whether or not Wall Street's bukkake whores have enough ammo left to put humpty dumpty back together one more time, given that interest rates have been stuck at 0% for six years straight i.e. the first non-recovery in U.S. history.

Index put/call ratio

How Wall Street used to hedge

Delayed onset drip levitation (QE) can't offset a $200 trillion global risk off stampede. One moves at the speed of overnight. And the other one meets every six weeks. Heroin to a dead man.

It's hard to put something back together again, when you can't find all the pieces.