There's only one way this can end...
Unfortunately, Social Mood theory only goes half way to explaining today's asinine divergence between fantasy and reality. Because what Central Banks have done is they have reverse-engineered Social Mood using the fake wealth effect. In other words they have used Central Bank money printing to drive a chasmic divergence between reality and fantasy. Which can only be resolved one way. As we will see below...
They have financed and amplified greed:
They have financed and amplified greed:
This is now:
Fed balance sheet with Fed Funds rate. Both of these levers have combined to amplify stock prices far beyond their proper valuations...
Don't try this at home
Unlike stocks, the 'Conomy and Profits are converging...
To see how this all ends, we can go back to the 2007 era when a 1% interest rate for one year, caused the biggest bubble that has existed prior to this current bubble...
This is Toll Brothers homebuilders
This chart is not bullish in the current sense either...
Anyone who speaks of Central Bank "credibility" is a total fucking idiot...
New home sales (red) with U.S. Population (blue):
New home sales (red) with U.S. Population (blue):
The difference is that this time the sheeple went ALL IN...because "there is no alternative..."
Cash balances:
