Friday, April 1, 2016

0% Recovery. Betting It All On Proven Failure

Monetary policy is like burning your house down to keep your hands warm. It's a great idea if you don't mind losing everything...This week, the Acid Queen, Janet Yellen, gave gamblers the green light to go ALL IN on RISK, so they did. Because this would only end if they didn't see it coming...

The past seven years has not been a recovery, it's been the exact opposite - eliminating the foundations of the economy, while speculators gambled with *free* money. The definition of an Idiocracy is trusting the same circus clowns over and over again, each time expecting a different result. 

It's a measure of the ludicrous ignorance and arrogance of this era that the same failed buffoons are still in charge of the economy after decades of serial failure. The Bush/Greenspan recovery was predicated upon 1% easy money, which ended with extreme dislocation after seven years of lying by corrupt buffoons in government, business, and media.

"Those of us who have looked to the self-interest of lending institutions to protect shareholder's equity -- myself especially -- are in a state of shocked disbelief,"
- Alan Greenspan on The Big Short aka. 2008

Seven years later, Deja Vu, using the exact same "policies". What is even more amazing is that unlike last time, interest rates have not normalized, which today's stoned gamblers have erroneously construed as a sign of "low risk". When of course it's an indication of extreme risk.  

MW: March 30th, 2016
Why You Shouldn't Fear Collapsing Profits
“It is the Fed, not falling profits, that kills economic expansions and in this case it hasn’t even begun to sharpen the knife,” 

Putting On the Risk:
In other words, there was always only one way this could all end - amid rampant gambling, a failed recovery, and extreme implosion. It was only a question of how many people could be conned by Central Bank psychopaths for the third bubble in 15 years. This week, the Acid Queen, Yellen, gave gamblers the green light to go ALL IN on risk...

With a recovery like this, who needs enemies?
Output gap (blue) with Fed Funds (red). Monetary policy kept the casino running while corporations monetized the economy. Under Bush. And again under Obama: