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.
Wednesday, May 6, 2015
2007 Top Déjà Vu: Stealth Bear Market
Today is the fifth Anniversary of the 2010 Flash Crash
However, they did arrest the UK day trader living in his parent's Hounslow basement, credited with causing $1 trillion in losses. So it's all good now. The world's fake wealth is safe from the UK Etrader.
But, just to prove how safe things are, the Fates have arranged a Skynet system test. Because as it turns out, the price range of the average S&P stock is currently almost exactly where it was at the prior top in October 2007 (blue arrow). Whereas today, the S&P is 35% higher. There was a major divergence back then between breadth and the market, and a mega-divergence now, so it's a fair test: The Real S&P 500: 52 week range of average S&P stock (index not shown):
The fakest stock market in human history, for the fakest humans in stock market history.