Thursday, July 27, 2017

Occupy Supply-Side Self-Muppetization

2008 was about muppetizing Main Street, this period now is all about muppetizing Wall Street...

"America’s second-longest bull run in stocks on record will end by late 2018, when U.S. credit also will enter its first bear market since the global crisis, according to a Bloomberg survey of fund managers and strategists."

Those who manage money are 'conflicted' between protecting the balance sheet (principal), versus protecting their P&L (profits). Central Banksters and imported poverty have made it impossible to do both at the same time. When I say conflicted, we already know that client interest went under the bus amid record low cash balances. Nevertheless, mass confusion reigns supreme in Trumptopia:

ZH: Billy Blain - 'Help, I Can't Find My Ass With Both Hands' 

Where we are in all of this is the late stages of a manic melt-up rally now working its way through the biggest cap tech stocks of this era. Microsoft and Netflix reported last week, and are now stalled at record highs. Apple is clusterfucked with the impending iPhone 8c++. Google imploded earlier this week. Which just leaves Facebook which just got moonlaunched (below) and then Amazon tonight.

Facebook key reversal of fortune:

Which gets me to the topic of Supply-Side Muppetization:

The obliteration of the real economy in the pursuit of perpetually unprofitable growth. As taught in $60k/year Ivy League MBA schools. Bought degrees belonging at the bottom of a Cracker Jack box.

The ubiquitous deluded fantasy that technology will seamlessly replace humans across the entire economy, thus returning an infinite ROI on 0% poverty capital. 

All ending in surprise collapse for a generation of supply side chimps who evince 100% confidence in the jobless consumer - key beneficiary of all free trade agreements.

This is the moment when all Econodunces realize at the same time that they are morally, intellectually, and financially bankrupt.

But don't take my word for it:

"The internet has changed the game. As companies get bigger, it's better and better for the consumer because you're getting better prices, better experiences"

"This will continue through late 2018"

Apple, Microsoft, Google, Netflix, Facebook, Amazon