Friday, June 16, 2017

BTFD aka. Buy The Fucking Depression

For the first time in U.S. history, the economy has rolled over ahead of the stock market. Central Bank sponsored volatility collapse has generated a delusional sense of mass complacency. Now record amounts of capital are exposed to unprecedented risk. Who knew that psychopaths can't recognize another psychopath when they see one...

ZH: Second Largest Risk Inflows In History

Now that everyone else has gone under the bus to make the quarter, the psychopaths are left to duel it out. This should be very interesting. Because in their finely honed game of zero sum economic survival the ONLY thing that ever matters is that someone else is going under the bus next. Picture a society run by Ivy League frat boys with the psychological profile of Jim Jones and you get the idea of who is running this latent disaster right now. The status quo requires a relentless body count, so now they're cutting deep into their own numbers as the "quaint" concept of active financial management has been obliterated in this cycle in favour of algorithmic trading aka. Skynet, and passive investing via ETFs. The economy itself stopped mattering a long time ago, duly supplanted by Central Bank monetary expansion, global ponzi borrowing, and casino gambling. This entire "system" by the way makes perfect sense when taken with massive doses of Prozac or other preferred reality-altering substance.

Neel Kashkari, who along with John Paulson architected the 2008 Wall Street bailout, and who is now head of the Minneapolis Fed, has this to say about the Fed rate hike, via ZH:

"For me, deciding whether to raise rates or hold steady came down to a tension between faith and data"

"If we base our outlook for inflation on these actual data, we shouldn’t have raised rates this week. Instead, we should have waited to see if the recent drop in inflation is transitory"

This is where the hairless monkey always gets into trouble. Because faith has its place in explaining the unknown. Whereas reality covers the known with 100% accuracy, plus or minus. And when those two concepts of the known and unknown get conflated, that's when 'surprise' comes into play to violently converge the difference.

It's especially embarrassing when Central Banks are confusing their own asset levitation programs with economic reflation:

"We should have waited to see if the recent drop in inflation [we caused via three rate hikes] is transitory"

 "We should have waited to see if the bullshit was transitory"

"You must buy this depression"

The Nasdaq rolled over last week

The rest of the world rolled over this week:

S&P 500 gamblers bought the dip

Meaning they bought banks because the Fed said everything is great...

Anyway, they've done it before...

Shopping center REITs — those that operate open-air strip centers, where retailers are arranged in a row and often around a traditional grocery anchor like Kroger — were tumbling more than their peers in the real estate sector on Friday's announcement.

It can't have anything to do with this, we know that much:

"When everyone started buying cauliflower on the internet, the economy imploded..."