Tuesday, December 15, 2015

LIMIT DOWN: The Last Temptation of the Idiocracy

Seven years of charades has rendered the Fed totally irrelevant...commodities, junk bonds, and Emerging Markets won't be waiting around for the Fed's next meeting...

This just in:
"I had no idea that 0% couldn't fix the over-borrowing caused by 1%..."

The only thing below this market is insolvency and panic. No one told anyone they had to buy stocks, gamblers bought stocks because they believed that Central Banks are invincible and can bail them out of any situation. It's called "moral hazard" - the belief that someone else will always pick up the tab for reckless behaviour. These perpetual childish bail-out fantasies are precisely what will GUARANTEE this all implodes with extreme dislocation...

For seven years straight while the Dow was artificially pinned to all time highs, the real economy has been sold for special dividends. To complete the delusion, the U.S. government conveniently excluded people who can't find work from the jobless totals. Now, the Fed hasn't even voted on their first rate hike in ten years, yet dopium whores are already gaming the next round of money printing:

ZH: Dec. 15, 2015

In other words, Wall Street is betting other people's money on the delusional fantasy that a quarter point rate hike makes any difference whatsoever at this late juncture.

The long dollar trade is the most crowded trade on Wall Street, so if the Fed DOES NOT raise rates tomorrow, expect Euro/Yen shorts ("carry trades) and dollar longs to get their faces ripped off. Not exactly accretive to year-end bonus.

Seven years of dicking around has led us to this point where the Fed is wholly irrelevant except to a claque of corrupt dopium whores desperate for year-end bonus.

Whether or not the Fed raises .25% tomorrow, we can be 100% assured that whatever happens after 2pm, Skynet won't "pause" at 1860 for six weeks until the Fed's next meeting. 

All it takes to end this shit show is limit down oil, commodities, currencies, stocks, bonds all on the same day.

And that date with destiny has been in process for seven years straight.

No one who owns stocks will live this down...
Junk bonds:

Who wouldn't want to own this?
The average S&P stock is currently below levels reached at the lows from last October 2014...

Emerging Markets:

Global Dow at levels first reached 2.5 years ago, or should I say in 2007...

Oil had its biggest loss, in 1998, when the dollar was weak...
Oil with $USD inverted:

Hazardous Immorality Visualized
Index put/call ratio i.e. how Wall Street used to hedge...