Monday, July 6, 2015

HALO Crash Wants To Happen

The age of "Socializing" all gambling losses under the asinine auspice of "Keynesian" dumbfuck-o-nomics, just ended. There's a reason no society in human history tried bailing out lenders by giving borrowers more debt - because they weren't that fucking stupid. Ponzi 101 - never get paid interest with your own principal.

Some people didn't get the memo yet:

Ponzi World is predicated upon all borrowers continuing to service their non-amortizing Ponzi debts. That assumption just went out the window. Instead of nominal rates of return, European creditors are now facing 30-100% "haircuts". Central Banks have herded investors into colossal losses, which will not be "Socialized". Spanish Ponzi bonds should not be yielding 2% at this juncture, nor any other time for that matter.

Meanwhile, thanks to Central Planning for Billunaires and Skynet, for the first time, the massively pre-weakened structure is in place for "non-contiguous price discovery". There has been no "RISK OFF" test for three years to flush out massively overleveraged weak hands. Which means they are going to get flushed now.  

Collapse isn't an 'event', it's a multi-year process of neglect and liquidation in broad daylight.

Followed by "Aw Fuck, Not This Again!!!"

The S&P with average stock:

Options Implied Volatility