The global economy falling apart in broad daylight is "great for stocks..."
Moral hazard:
The onboarding of asinine risk under the assumption of always getting bailed out. Culminating in the usual "unforeseen" Black Swan event.
ZH: Aug. 11, 2015
"QE didn't work the first time, and it didn't work the second time, but now it's their only option"
Well, it's hard to argue with that logic.
Unfortunately, the Fed is in tightening mode, not printing mode. There could be somewhat of a loss of credibility if the Fed says just yesterday, they are close to hiking, but instead prints money in September.
Did China's Yuan devaluation make any difference? Deflation fell off a cliff, but 1 year Treasury yields are still at .37%. So between now and whenever money printing begins, the ground and pound will continue.
We've never seen anything this asinine before...
One year interest rates (black) with U.S. deflation (red)
Longer-term view of above (colours are reversed):
Moral hazard Visualized:
"Why hedge when the Fed is going to print more money?"
Index hedging then and now...
The Fed "Put" (option) may be a little further under the market than Wall Street expects:
As we learned in 2008, the Elliot Straight Down Wave doesn't wait six weeks for the next Fed meeting
Filed under careful what you wish for, money printing will resume when Wall Street gets monkey hammered into fucking oblivion.
At which point buying revenueless IPOs won't be front of mind.
