Tuesday, November 22, 2016

A Shockingly Large Ponzi Scheme

But not big enough to do anything about it  - other than to assume it will continue forever...

The 2008 Global Financial Crisis was caused by a U.S. housing and debt crisis sponsored by 1% interest rates for two years. To fix that problem, global policy-makers lowered interest rates to 0% for eight years and sponsored a global housing bubble funded by a 50% increase in global debt...

All of which asinine policy has led to shockingly high levels of Ponzi inequality:

And yet, not nearly enough inequality to do anything about it, because generation entitlement wants MORE...

But never fear, because Ponzi schemes ALWAYS collapse and the people who throw money into them are always the last to know aka. too late. Why, is not for me to say...

Going down the list:

Global GDP growth is at 2009 levels and sinking
U.S. GDP ex-deficit is -2%
Global trade in $USD is at 2011 levels and sinking
The Chinese Yuan has been falling for an entire year now
Oil speculators have been getting buried for an entire year 
Global bank stocks which lagged for eight years just went vertical due to a possible U.S. rate hike to .5%
Corporate profits are the highest proportion of GDP since 1929

And now, Forrest Trump just monkey hammered global credit markets and Emerging Market economies which sent the Dow Ponzi Average to a new all time high. What else?

Because let's face it, no one really wants to see it coming. That would require a change of lifestyle, before it was absolutely shoved down their throats sideways...