Ponzi World (Over 3 Billion NOT Served)

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.

Tuesday, June 28, 2016

Volatility Regime Change: The Hook Is Set

This first leg down has been characterized by relatively low options volatility as the dip got bought with both hands, shorts were covered, and hedges got monetized...

"Global stock markets shed more than $3 trillion in value. Some market participants took that as a signal the worst of the ugly Brexit carnage was over."

CNBC June 28, 2016
The Fear Index is Sinking - Here's Why
"All the hedging that was done prior to this" is being "taken off," which is driving down options prices and hence implied volatility measures"

"the VIX turnabout is "a bit surprising but indicative of the complacency I think persists"

VIX with low volatility fund (inverted):