The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
Friday, May 20, 2016
How Collapse Gets Done: Eyes Wide Shut
Wall Street's latest fake mantra is "not as bad as expected". Which allows the mannekins on CNBS to claim that every company "beat" estimates, which were lowered every day during the quarter... "Alright, we'll call it a draw"
This week, the Fed shocked Global markets by saying that the economy *may* reappear after 7 years' absence. They gave no details on how that could happen.
In response to the tacit breaking of the "Shanghai Accord" to weaken the dollar, the Chinese weakened the Yuan the most since the last time markets broke in January.
The RISK ON commodity, oil, and Emerging Market rallies all reversed
"Defensive" recession stocks were the weakest overall sector
The Global Dow declined to the August lows
HFT broke on average volume
Retail stabilized at lower levels thanks to "not as bad as expected" numbers out of Walmart:
EM Debt and currencies rolled over this week:
Rydex cash balances inverted:
In other words, all of the critical risk factors coalesced and got bought near the all time high this week...