Wall Street chimps are hanging on for more dopium, buying every dip, and praying for another Fed bailout...
The most corrupt sociopaths on the planet are gathered in Davos this week for a massive circle jerk, while their beloved Ponzi scheme implodes in broad daylight:
Even if QE started today, it would do absolutely nothing to fix the decaying fundamentals of the economy...
Employment, global growth, Emerging Markets/China, oil/commodities, Corporate revenue, and profits would all be unaffected.
In other words, corporations are becoming more insolvent with each passing day and another bond buying program will do nothing to change that fact. The marginal buyer of stocks determines the value of ALL shares outstanding, based upon the underlying value of the asset. In this cycle, all of the tools who can be conned, have been conned. Wall Street is on their own now - trading worthless pieces of paper back and forth pretending to be wealthy.
One of these is not like the other...
The S&P earnings yield peaked back in 2011, because Central Banks created a momentum feedback loop that conned morons into bidding up increasingly insolvent assets. The marginal value of stocks is going down, and the stock buybacks haven't even cut out yet...We see from 2008 what happens to earnings when revenues and stock buybacks both get hammered at the same time:
i.e. they go to ZERO, which is where they are already heading, along with the Dow...
"The dumb money is gone. Who has the dumb money?"
Rydex bull: bear asset allocation
