What else?
The downside of serial bailouts and magical thinking is that one forfeits the right and ability to know when it's ending. This will be a good hard lesson for the alt-right super frauds monetizing useful idiots on Zerohedge and elsewhere with ad-sponsored bullshit. They had a good run. This will be forever known as the decade of magical thinking. Just remember, none of this fraud and delusion was man-made.
Now we know why the man boys are shitting bricks:
"The Massachusetts Senator said in a September tweet that she would put a “total moratorium on all new fossil fuel leases for drilling offshore and on public lands,” and that she would ban fracking everywhere."
This industry isn't going to wait a year to implode. The 2016 lows are getting pounded by insolvent frackers:
Speaking of getting pounded:
"Don't worry, this is seasonal"
Founded: 1905
Quite apart from MAGA glue sniffing, there's a reason why even those evincing a nominal IQ don't see this coming - it's because global gamblers now have an overriding belief in Disney Markets. Well-conditioned from a decade of non-stop central bank bailouts. It never occurs to them this could all be ending, now.
mor·al haz·ard
"lack of incentive to guard against risk where one is protected from its consequences"
The downside of serial bailouts and magical thinking is that one forfeits the right and ability to know when it's ending. This will be a good hard lesson for the alt-right super frauds monetizing useful idiots on Zerohedge and elsewhere with ad-sponsored bullshit. They had a good run. This will be forever known as the decade of magical thinking. Just remember, none of this fraud and delusion was man-made.
Now we know why the man boys are shitting bricks:
"The Massachusetts Senator said in a September tweet that she would put a “total moratorium on all new fossil fuel leases for drilling offshore and on public lands,” and that she would ban fracking everywhere."
This industry isn't going to wait a year to implode. The 2016 lows are getting pounded by insolvent frackers:
Speaking of getting pounded:
"Don't worry, this is seasonal"
Founded: 1905
Quite apart from MAGA glue sniffing, there's a reason why even those evincing a nominal IQ don't see this coming - it's because global gamblers now have an overriding belief in Disney Markets. Well-conditioned from a decade of non-stop central bank bailouts. It never occurs to them this could all be ending, now.
mor·al haz·ard
"lack of incentive to guard against risk where one is protected from its consequences"
Hugh Hendry predicted years ago, that this fairy tale would end with recession bought with both hands. His advice for professional money managers was to ride the delusion for all it's worth - one bonus cycle at a time. Heads I win, tails the client loses.
"Investors have been living in a world in which markets have transcended reality since early 2009"
"The worse the reality of the economy becomes, the more we take on the reflexive belief in further and dramatic monetary expansion and the more attractive the stock market looks."
"In the long run we will come to rue the central bank actions of today. But today there is no serious stimulus programme that our Disney markets will not consider to be successful."
"The worse the reality of the economy becomes, the more we take on the reflexive belief in further and dramatic monetary expansion and the more attractive the stock market looks."
"In the long run we will come to rue the central bank actions of today. But today there is no serious stimulus programme that our Disney markets will not consider to be successful."
Which is why hedge funds are now 100% correlated to the S&P 500
And ten months into Fed "pivot", hedging is non-existent
October 17th, 2019
"Investors seem to believe that the Federal Reserve and other central banks will respond quickly to sharp tightening in financial conditions, “hence implicitly providing insurance against significant declines in stock prices.”
"This sort of safety net was first dubbed the “Greenspan put” after the October 1987 stock-market crash. It is now updated to the notion of a “Powell put”"
"All time highs"
Coordinated central bank actions in 2019 have synched global asset correlations to near 100%.
From negative last year:
The holy grail of profit maximization for hedge funds is the recurring delusion of "dynamic hedging". Which means buying fire insurance during the fire. It never EVER works in reality, but it's always a good "strategy" for maximizing short-term P&L. In 1987 it did a fantastic job of accelerating the decline. Which is exactly what it will do this time around. Aided and abetted by ETF stop losses. And record short volatility speculative positioning (bottom pane):
Can central banks really bail out all risk asset classes after the crash? Of course not. Central banks create bubbles, they don't save them once they've already collapsed. They certainly don't forestall margin calls.
Like the imaginary "plunge protection team", dynamic bailouts are science fiction believed by over-committed gamblers.
When the Fed lowers rates to 0% it will only be because the underwear is full.
