Thursday, March 17, 2016

Shock Doctrine 2.0: Terminal Idiocracy

As it was with 9/11 (Shock Doctrine 1.0), Corporations used Lehman as an excuse to outsource the economy, creating the first non-recovery in U.S. history. This is a society run by corporate bitches and errand boys...

Historically, Fed liquidity peaks with the trough of the recession and then recedes as the stock market rallies. This cycle has been the exact opposite. Fed liquidity peaked with the stock market. Now dopium whores take Fed neutrality as bullish, when historically that has signalled the beginning of a bear market, which is already well underway...

CNBC: Mar. 17th, 2016
Yellen Gave Green Light For Stocks
As always, what the Idiocracy believes is the exact opposite of the truth. When the Fed is done tightening and moving to easing mode, is when stocks roll over. As we see from 2007, the axiom "Don't fight the Fed" is ass backward...

Blue line is Fed Funds. Green line is Fed balance sheet. Red line is price/volume as proxy for liquidity...

If the Fed is really done tightening, then the bear market is set to accelerate. The blue vertical line shows that liquidity peaked with the Fed's balance sheet and low interest rates...any attempt by the Fed to ease now, is called "too late"...



Corporate profits determine the value of stocks, not liquidity...

This cycle is over, and the economic recovery never took place, because corporate errand boys were too busy being errand boys...

Corporate profits (red) with stocks...



Terminal Idiocracy: