Ponzi World (Over 3 Billion NOT Served)

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, October 28, 2015

Walking Into A Buzz Saw: Extreme Risk. Extreme Complacency

Pavlovian gamblers have already been monkey hammered at 0%, but they want more pain please...

The investing cycle is ending amid negative returns, however, low volatility and low interest rates have forced gamblers to take extreme risks for ever-less reward. They have 0% incentive to go to cash...

Returns are already turning negative across all asset classes, but interest rates still at 0% means that it hasn't occurred to any of them that the cycle might actually be over:

Volatility (red) is just starting to rise:
Corporate profits (black)

But hedging is non-existent, even as returns go negative...
Index Put/Call ratio

"Double down. You got this, bitchez"