The Idiocracy is black swan diving into pavement...Central Bank Frankenpolicy is imploding in broad daylight, but don't tell that to stoned zombies. They still believe that printing money is the secret to effortless wealth...
Fool me three times, shame on me:
U.S. Nasdaq:
Ever since the 1987 crash, there has been a myth on Wall Street of the "Fed put" i.e. the Fed's ability to prevent massive crashes. Except, of course the Fed didn't "prevent" the 1987 crash at all. Nor did they prevent the -50% DotCom bust. Nor did they prevent the -55% Lehman bust. Janet Yellen once admitted that she never saw the Housing crisis coming.
“For my own part, I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.”
In other words, Central Banks create bubbles they don't prevent them from collapsing. And yet faith in Central Banks remains resolute. Even perma-bear Peter Schiff now believes that Brexit is a gift to the Fed. Because it will facilitate more money printing (QE4) and gold inflation thereby boosting his vast gold portfolio. Go figure.
Unfortunately for Peter Schill and company, Janet Yellen just stated this week:
And, suffice to say that the Central Banks that fiddle fuck around with their stock markets the most, have the weakest markets.
The Bank of Japan owns more than 55% of Japanese ETFs...
Two weeks ago, the Chinese indices were humiliatingly rejected from the global MSCI stock index AGAIN due to the amount of intervention the PBOC conducts on a regular basis. Even more than Japan...
The ECB just launched another Bazooka at European banks, which are capitulating...
Deutsche Bank
Locus of Lehman...I mean "buying opportunity"...
Careful what you wish for...because one day *free money* comes home when least expected, and the next thing you know the S&P futures are limit down 100 points. For the second time in less than a year...
Central Bank policy failure visualized:
The "Fed Put" visualized
"I just have one question, who's going to buy my Netflix when this all goes sideways?"
