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.
Sunday, February 4, 2018
The Age of Ignorance And Arrogance. Is Over.
This week was a seminal week for global financial markets...
Two Fridays ago, on the last day of Davos, the Dow closed at its all time high. One week later, the Dow closed at the absolute lows of the week -1,100 points lower. It was a key reversal of fortune:
90% of total volume was in declining stocks, for the first time since September 2016:
Ahead of the biggest weekly decline in two years, hedge fund billionaire, Ray Dalio had this to say from Davos:
On Friday of course, the Non-Farm payrolls report showed the largest one month wage gains for the entire post-2009 expansion. All of which can be attributed to the nominal wage increases Fortune 100 companies gave their employees to lend the tax cut its micro-thin patina of concern for the middle class.
Exiting the worst week for stocks in two years, we now learn that gamblers remain record long stocks and record short Treasuries.