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.
Friday, May 12, 2017
0% Return on Capital: Poverty's Revenge
The Idiocracy's curse for allowing global poverty to run rampant while corporate profits soared to ever-higher heights is an ever-lower invested return on capital. The glut of capital thrown off by unprecedented profits has nowhere to hide, hence the zero sum stock market circle jerk featuring stoned gamblers bidding up their own stocks while pretending to be wealthy. Deja vu of Y2K and the Housing Bubble, for Generation Alzheimers...
"Good news, we successfully obliterated the U.S. economy and replaced it with a low margin web site..."
This week, retail ex-Amazon got obliterated, as did banks. Oil bounced while Apple and Amazon held the casino near all time highs. Shockingly, the Fed's plan for reflating the economy by raising borrowing costs, is not working out. But don't tell them, since they've decided they're right and markets are wrong. Lowest weekly casino volume in over a decade (ex-holidays):
"I can't think of anything to worry about. Can you?" Large banks
U.S. oil ETF stopped right at prior support:
What happens when only two stocks are holding the entire casino up: