Wednesday, May 20, 2015

The Stock Market Ponzi Scheme. Occupy Deep Karma.

At its most fundamental level, a Ponzi Scheme merely represents an unsustainable rate of extrapolated "growth", papered over by inbound capital. Insiders cash out using late investor inflow. Today's stock market multiple discounts profit growth at above trend rates in perpetuity:

Only the greediest society in human history would assume that a one-time self-cannibalizing "special dividend" represents sustainable growth, when it represents the exact opposite: an extremely abrupt and unforeseen cessation of income. Still, they throw their life savings into this disaster, which flow straight through to offshore bank accounts via stock buybacks. A fitting end for a corrupt society: Self-obliteration.

What comes next will largely decimate the multinational corporations, levelling the playing field for local businesses, and paving the way for a real economy. In every country.