Wednesday, February 3, 2016

Delusion of Control

Human beings don't have control, they have the illusion of control, which always ends with a heavy dose of humility.

Empires don't have control, they have the illusion of control which they rent at an exorbitant rate until they go bankrupt and cede control to another society hubristic enough to repeat the same process.

Central banks don't have control, they have the illusion of control via asset drip feed levitation programs which work until capital gets reallocated in size. At which point they realize they're overpaid dunces. 

Below, this is what global risk markets think about Kuroda's negative interest rates, intended to put a bid under dollar/Yen:

"We've seen this before, I just can't remember when"

And Skynet doesn't have control, it has algorithms that provide liquidity when markets are stable and then remove liquidity when markets are unstable. 

Beyond the headlines, today was one of the most extreme technical events in three years. Hedge Funds made 2.3% in one hour today, which to put that in perspective is two months' worth of targeted return. No sooner had JPMorgan put out its latest reminder to sell every rally, when Skynet walked futures up 20 points overnight. The gap up open was sold down at the fastest rate in 3 years dropping 50 points in a straight line: 2.3%. At that point, anyone with an IQ of 5, covered, which provided the fuel for the short-covering rally in Energy stocks aka. "Exxon" which was up an asinine 5%.

What's my point? Skynet may not be the one getting sold next time...