Wednesday, September 2, 2015

Printing Money: The Idiocracy's Secret To Effortless Wealth

"We've stumbled upon the new El Dorado"

Printing money to buy stocks is just euthanasia for the sheeple, so they maintain silence while being bent over the log...

ZH: Sept. 2, 2015
"The Almighty Dow Casino Is Too Big To Fail"
"By turning the health of the economy into a reflection of the stock market, the Status Quo has made the stock market into the one bellwether that matters...The Federal Reserve will have to prop it up at all cost"

Bernie Madoff is wondering why he's the one in jail
The fantasy of the day, and the one that gamblers will take to their grave, is that the almighty Fed can bail out the stock market any time they want. It didn't work during Lehman mind you, despite myriad interventions, but this time it's always "different". For a generation that squandered its own savings and now relies upon Netflix call options for their retirement, we can understand where this fantasy derives from. And as long as they cling to this fantasy, they will remain fully invested until they lose everything.

"What stocks should I buy in a meltdown?"
The real question on the table is not whether or not the Fed can buy everyone's stocks. The relevant questions are - can the Fed prevent a global recession. Can the Fed prevent the multi-trillion global carry trade unwind that is RIGHT NOW blowing up Emerging Markets. Can the Fed prevent $200 trillion in risk assets from getting "re-priced" overnight. Can the Fed create a sustainable economy that doesn't require non-stop borrowing and printing money. 

Of course not. And to believe so is the height of asinine - It's double or dog food for a generation that squandered its savings and now believes that Netflix is the "only bellwether that matters". 

Did the ludicrously named "People's Bank of China" prevent the meltdown in Chinese stocks?
Let's see, optical refraction would suggest it didn't work, despite dozens and dozens of interventions, including buying stocks directly, prohibiting short selling, prohibiting ANY selling, halting trading, etc. etc...

The ongoing obsession with the casino is what allows everything else to fall apart in broad daylight.

And the unfounded belief in the omnipotence of Central Banksters is what keeps the sheeple from selling, while institutions liquidate with both hands. 

The casino is not a "barometer of the status quo", it's what diverts attention, while the status quo ends.

It's euthanasia for deep fried zombies...

Dow with Fed balance sheet (red) and 0%