Sunday, April 10, 2016

A Conflict of Meltdown: Buried By Denial

Systemic meltdown doesn't fit into Wall Street's profit model, so they pretend it can't happen while they're making it happen...The bullshit is flowing like a river, but the Idiocracy doesn't believe in conflict of interest, so they're getting buried deep, in broad daylight...

Widely believed idiocy:
Earnings don't matter anymore
The 'Conomy's doing great
Recession risk is low
We're borrowing our way out of a debt crisis
China's meltdown is "contained"
Oil is heading back to $80 
Central banks have eliminated risk
Printing money is the secret to effortless wealth...

Hedge Funds can't hedge and stay in business, so they don't. Central banks have made it impossible for anyone who manages a P&L to remain hedged, which is why EXTREME complacency reins in the face of EXTREME risk.

ZH: April 10, 2016
This is the guy who said one year ago, that he's taking the blue pill now, and therefore China affords the best opportunity for speculation based on "Imagined Realities".

Now he asserts that printing money is the secret to effortless wealth, what else? These fucktards will say anything to rationalize their conflict of interest...
"QE has influenced the integrity of market pricing because it took away the very real risk of a depression. In that sense, equities are worth more "

A tale of hedging only after the fact.
Option skew shows that Wall Street was unhedged prior to the August Flash Crash, then hedged in the Fall, then unhedged again after the January decline, and remains unhedged...

Index Put / Call