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.
Wednesday, March 21, 2018
The Dumbfuck's Guide To Fixing Wealth Inequality
I think we all know where I'm going with this. What we've learned from history is that hairless monkeys don't learn from history...
Globalization was supposed to fix wealth inequality by raising the standard of living of poor people, not by imploding everyone else. Unfortunately, our dunce economists, politicians, and business leaders didn't get the memo.
Here is where this unique approach to fixing wealth inequality gets interesting. Way back in 1929, Republicans were cutting taxes, the stock market was booming, gamblers were obliviously speculating in every risk asset known to man using record margin. Business and consumption sentiment was soaring. Wealth inequality was extreme.
"The Federal Reserve’s rate increase(s) had unintended consequences...In September 1929, stock prices gyrated, with sudden declines and rapid recoveries. Some financial leaders continued to encourage investors to purchase equities"
Speaking of elevated assets, the Fed today raised rates again by a quarter point and they also raised their forward economic outlook.
Wall Street is going to regret sending all of the C students to work at the Fed. They apparently can't interpret their own fucking graphs:
Based on this "hawkish" view, banks rallied while the erstwhile "safe haven" yield trade further imploded.
In other words, the Fed has successfully imploded the safe haven trade.
While corraling dunces into banks deja vu of February:
We haven't seen failure at the 200 week in Real Estate (REITS) since...2008.
Also last week:
They will be surprised when the BTFD retest is not "successful"