Exhibit A: record bets on the indefinite status quo amid growing global turmoil. What could go wrong?
VIX futures speculative net short position:
Make old men honest again...
One thing all of these dunces across the entire political spectrum share in common is that they don't see the status quo consumption oriented competitive lifestyle ending now. "More" is the standard assumption. Forty-eight years ago NASA slingshot a six million pound rocket a quarter million miles to the moon and back at 10 times the speed of a bullet. Today, circus clowns are fighting trade wars on Twitter, 140 characters or less. There is no such thing as exceptionalism anymore, if there ever was such a thing. All there are is old men like Pat Buchanan harking back to something that no longer exists. A way of life consumed by special dividends. The future belongs to those who have the humility to accept that "we" are all the same after all. Those who've built an imaginary bridge to the indefinite "more", with the assistance of trusted psychopaths, will learn the hard way. Instantaneously.
This is a close-up view of the VIX futures position. Gamblers are betting that extreme complacency becomes more extreme. Which means that the cost of hedging capital is now 100% binary. Now you can hedge. Now you can't.
New record high this week: