Elliot Wave v.s. Skynet

Skynet is about sucking money in on low volume. Elliot Wave is about puking it out on high volume.

The Russell (small cap) / Dow ratio: Getting giddy, at the worst possible time:

The Scylla and Charybdis of Greed and Obliteration

Pre-Lehman, Wall Street saw the collapse coming all the way, and successfully shorted subprime, making colossal profits, as documented in "The Big Short". 

The Big Long: the exact opposite of 2008
In this cycle, thousands of hedge funds have already failed while attempting to short this current illusion, because ironically Skynet has been programmed to find the shorts and squeeze them into oblivion. (And of course 'hedge fund' refers to Goldman, JPM & Co., the world's largest closet hedge funds). This history's largest stop-hunt, is why the best-known perma-bears: Rosenberg, Roubini, Hendry have capitulated. It's either that or lose their jobs:

"Out of an estimated seventy-two hundred hedge funds in existence at the end of 2010, seven hundred and seventy-five failed or closed in 2011, as did eight hundred and seventy-three in 2012, and nine hundred and four in 2013. This implies that, within three years, around a third of all funds disappeared."

This process of sucking in capital while making risk management impossible for anyone focused on short-term gain, is a necessary and sufficient condition to ensure that Wall Street's "profits" from this collapse, will not live up to the expectations of the last.

This time there will be nothing left to bail out.

The Failing States of Globalized Hegemony

2008 and the past 7 years have systematically drained the Global Hegemons of economic resiliency. They're all staggering to the collapse of their common lifesource, Globalization.

ZH Ron Paul Institute, April 5, 2015

NATO is building up for war

"Even if Russia had indeed invaded Ukraine, it would have had nothing whatever to do with anyone else. The US-NATO coalition willfully ignores the fact that Ukraine is not a member of either the European Union or NATO and has no treaty of any sort with any nation in the world that would require provision of political, economic or military support in the event of a bilateral dispute with any other country."

Dec. 1994: Budapest Memorandum on Security Assurances

"The Memorandum was originally signed by three nuclear powers, the Russian Federation, the United States of America, and the United Kingdom. The memorandum included security assurances against threats or use of force against the territorial integrity or political independence of Ukraine as well as those of Belarus and Kazakhstan. As a result Ukraine gave up the world's third largest nuclear weapons stockpile between 1994 and 1996"

...

"Russia accused Western governments of violating the pledge to respect the political independence of Ukraine by "financing a coup d'etat" that ousted President Viktor Yanukovich"

Hubristic and asinine mistakes have been made on all sides, but don't expect any media source to convey that all-important boring fact. It's much more fun to play good guys and bad guys with totally unverified assertions.

Nevertheless, 2008 gutted the global hegemons including China. They're all bleeding from the inside out, casting about for foreign adventures to divert attention from the real meltdowns happening at home. It's a two front war and the ignored losses are mounting.

Only Because They STILL Think This Isn't Ending

Price / Volume

With Hubris and Denial. The Only Way It Would End.

There were a handful of bloggers raging to a handful of people.

There was the oblivious elite revelling in their ill-gotten Ponzi wealth, attended by their sycophant media bukkake whores.

There were political game show hosts with 8% approval, rearranging deck chairs on the Titanic.

There was the Soylent Idiocracy mercifully euthanized in junk food and junk culture.

There was a bailed out Wall Street making ever-larger bets with unlimited amounts of free money:

Barrons: March 30th, 2015:

Too Big To Bail: JP Morgan is 30% larger than it was in 2008

The only way it would end.

American Oligarchy

Vote for change. Nothing happens.

We don't live in a democracy, we live in a Fascist Oligarchy run by Corporations at the behest of billionaires

Fatigued voters elected President Obama in 2008 on the basis of "hope and change". A radical break from George W. Bush. and his "Keynesian" stimulus of destroying other nations. When it turned out that Obama was at best incrementally different than Bush, there was widespread disillusionment. He was only re-elected by default when the RomneyBot inadvertently told half the country that they are worthless...

Painted Into A Corner By Lies and Bullshit

U.S. debt:

True Keynesian policy is counter-cyclical, not secular (continuous).
Only a fucking moron borrows continuously:

I keep reading about the failure of "Keynesian" economics in this era. It's the all-important false narrative designed to divert attention from the real root cause of this fiasco which is out-of-control corporate greed and the junk philosophy of Ayn Rand's 'Rational Self-interest' taken to its logical self-cannibalizing dead-end.

Here are the asinine ideas of today that Keynes never endorsed:

1) Running trade deficits for 35 years straight 

2) Running fiscal deficits for 35 years straight compounding debt at 10% annually

3) Bailing out Wall Street 100 cents on the dollar after they collapsed the global financial system 

4) Printing money to buy stocks to enhance the trick-down wealth effect from billunaires

5) Using the money supply to inflate a housing bubble under the auspice of the 'wealth effect'

6) Outsourcing the entire economy to China and then wondering why there are no real jobs

7) Cutting taxes for the ultra-wealthy

8) Destroying other countries to stimulate the economy

Most notably, however, Keynes realized that there were inherent limitations to monetary policy in a deeply deflationary environment, which is why he developed the theory of a liquidity trap.

Keynes Predicted that Monetary Policy Is a Dead-End

"A liquidity trap is a situation, described in Keynesian economics, in which injections of cash into the private banking system by a central bank fail to decrease interest rates and hence make monetary policy ineffective. A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war. Common characteristics of a liquidity trap are interest rates that are close to zero and fluctuations in the money supply that fail to translate into fluctuations in price levels"

If Keynes made one mistake it was not foreseeing the sad lengths of Ponzinomic desperation on display today, all just to prop up a handful of obscenely wealthy billionaires who would otherwise be millionaires. And the lies that would be used to justify the entire operation.

The Failing States of Globalization

Ponzi wealth has never been higher. The list of failed states is growing commensurately.

"A failed state is a state perceived as having failed at some of the basic conditions and responsibilities of a sovereign government"

Below, Failing States in order of risk.
125 out of 178 countries are currently ranked between 'Warning' and 'Very High Alert'. It would be easier to list the countries that are not at significant risk. As a point of reference, North Korea is ranked #26. Libya is #41. Somehow the largest ponzi borrower in world history, Japan, is listed as 'very stable'. Which shows the level of status quo delusion.  

Rough guess, 75% of humanity is already failing. But they have no wealth and no voice, hence they don't exist, drowned out by entitled mannekins on FauxNews...

The Madness of Crowds and Silence of the Sheeple

"Social pressure to take a certain action, adopt certain values, or otherwise conform in order to be accepted."

Maintain status quo. Question nothing.

Be a winner, an optimist. Live the dream.

Assume the usual psychopaths have this all under control, and act shocked as hell, when they don't.

Above all, enjoy the silence.

“The real hopeless victims of mental illness are to be found among those who appear to be most normal. Many of them are normal because they are so well adjusted to our mode of existence, because their human voice has been silenced so early in their lives, that they do not even struggle or suffer or develop symptoms as the neurotic does. They are normal not in what may be called the absolute sense of the word; they are normal only in relation to a profoundly abnormal society. Their perfect adjustment to that abnormal society is a measure of their mental sickness. These millions of abnormally normal people, living without fuss in a society to which, if they were fully human beings, they ought not to be adjusted.”
- Aldous Huxley

The Beatings Will Continue Until Morality Improves

"The only problem with Christianity, is that it's never been tried"

The fantasy of Ponzi-financed "infinite" growth. The biggest self-deluded disaster in world history. 

Humility

Tolerance

Compassion

Could save this species.

But, while that's not happening, the Malthusian 'adjustment' will be tattooing this species with a lesson in Third Grade math and humane values.