Friday, August 28, 2015

"More Free Money 4.0 Please"

Six years of Central Planning for billunaires has made gamblers extremely complacent. Instead of hedging, they look for Central Banks to bail them out constantly with printed money. Which as we see below from the red line (Fed balance sheet) is what happened in 2009, 2010, and 2012. The rally didn't resume until money printing resumed... 

EVERYONE is gambling their portfolio on the QE4 "put". Apparently they slept in late on Monday. The Federal Reserve doesn't meet on microsecond boundaries. And they are not currently in "easing mode", they are in tightening mode.  

To be sure, QE4 will come. But by definition, not at this level...

"What did you do with free money 1.0, 2.0, and 3.0 we gave you?"

"We lost it on revenueless Biotech IPOs - in the span of about 30 seconds on Monday"

"What are you buying now?"

In the meantime, until Fed policy magically turns from "tightening mode" to "easing mode" overnight, the fate of reckless gamblers is in the hands of Skynet.