Monday, April 17, 2017

The Casino Is Going Out of Business. For Good.

"They were waiting for everyone else to get screwed over, when they realized they are everyone else..."

One common theme for the past eight years was the fact that the stock market has risen faster than corporate profits, mainly because it's 100% pure Ponzi, accept no substitutes. This "condition" has led to a steadily declining earnings yield (E/P), which means that gamblers are assuming three things:

1) Profits will eventually catch up to stocks
2) A greater fool can ALWAYS be found
3) The cycle is not ending any time soon

Of course if those three conditions do not abide, the elevator ride is straight down.

Herein lies the problem: Generation Madoff has been outsourcing the 'Conomy for eight years straight to pay for *special dividends* - Burning down the house to keep their hands warm in the meantime. So, the likelihood of a hard landing has been assured by the same sociopaths who can't see it coming. 

Contrary to ubiquitous belief, the fate of the Casino and the 'Conomy are one and the same. It's only a question of how many people don't see it coming...

Industrial Production growth rate (red) with Earnings yield:

Robots don't do as much shopping as they used to:

On a related note, I read something disturbing recently which claimed that the Millenials are a "disturbing" generation, because they do not exhibit any of the sociopathic tendencies of their exceptional forebears. At least this is according to the generation(s) that threw their own kids under the bus and then blamed them for all of the problems. In other words, compared to generation creep show, Millenials do not exhibit the same affinity for Supply Side indentured servitude, Ponzi borrowing, and printing money. Hence they are not exceptional.

But the one thing Generation Madoff should find MOST disturbing is that about the time that they are filling their diapers in the Old Age home, scraping out their last dog food cans, and otherwise decrying the fact that "no one saw it coming", the Millenials will be writing the history books as to what really happened in this godless era. And then you'll see who is really going under the bus.

Because then the generation that never shuts the fuck up, will be shut the fuck up. For good.

In the meantime, prepare for hard landing.