Atlas Shrugged, Indeed

For those who are blind-sided by what comes next, it's only because they are fully bought in to the status quo and otherwise can't fathom that it could all end at a moment's notice.

They never stop to question whether or not the hundreds of millions of sweatshop factory slaves who keep the globalized Ponzi functioning, will continue to show up for work on time...

What Greed Wants

Everything. 
Careful what you wish for...

Silent Rage

The most bewildering aspect of this age of overwhelming greed is the fact that the people at the top have no fear or trepidation about deriding the people at the bottom of the socioeconomic ladder. I just read this article describing the latest report from the Fraser Institute based in Vancouver. It's a right-wing/libertarian think-tank. The article raises the alarm that fewer and fewer Canadians are paying taxes - a trend that is similar to what they say is occurring in the U.S. Maybe they didn't get the memo, but this was one of the issues that caused Mitt Romney to lose the election, mostly because it's complete and unadulterated bullshit...

Just Another Wall Street Greedfest

The sole goal of Monetary Policy these past four years was to levitate asset markets until the real economy resumed organic growth. Of course, due to the number of jobs shed after 2008, that was never going to happen. Here we are, four years later, still applying record amounts of fiscal and monetary stimulus, while the vacuous morons in leadership scratch their heads as to why there are no jobs...

Fools And Their Money Are Soon Parted

This Cyprus bailout with attendant deposit confiscation for certain depositors appears to be stirring an awakening across the slumbering masses. I am basing that observation merely upon anecdotal evidence at this early juncture. Some here in the U.S. have pointed out that zero percent interest rates for four years straight has been its own form of confiscation, by favouring borrowers over savers. I have made the same point. However, the other major risk arising from zero percent interest rates, is not just underfunded pensions, it's the fact that it has turned many savers into speculators...

Waiting For Minsky

In the past two years the entire global financial system has been in turn held hostage by Spain, Greece and now Cyprus. Soon a Seven-Eleven going tits up will require ECB intervention:

The Globalization Virus

Globalization was on the verge of collapsing in 2008 when world leaders stepped in and rescued it from the dumpster of history. In their infinite wisdom in order to save it, they used the exact same policies that led to the 2008 collapse  - namely,  debt accumulation sponsored by easy Central Bank policy - and they amplified those policies 10 fold. That’s how all problems get "solved" in the Idiocracy.

Regardless, globalization has already failed the majority on this planet and it’s failing more and more people with each and every passing day. Granted, the ever-dwindling number of apologists for this catastrophe happen to be the loudest gas bags in society, so they are still able to drown out the simmering rage of the silent majority. However, like all viruses, the relentless globalization virus can’t be controlled, so it must burn itself out.  Which means that the host will have to die first...

Fool Me Three Times, Shame On Me...

The ECB just gave Cyprus until Monday to agree to the terms of the Eurozone bank bailout plan or face a liquidity "cutoff". Bank depositors are queuing up at ATMs around the country...

Neither side can be seen to capitulate, but nor can they risk a full fledged bank run. Once again, the world economy held at the brink by banks that profited from risky loans that should have never been made in the first place. None of these banking buffoons learned a fucking thing from 2008. What more proof do we need? Meanwhile, the Eurocrats in charge of resolving this fiasco have no clue as to the overall level of macro risk that has been piling up while they were away at Davos...

The Only Chart That Matters

Zero percent interest rates and perpetual money printing makes the dollar a favourite funding currency for the global carry trades. Which means that if the dollar rises, the carry trades need to be reversed - quickly - before something breaks. What's the dollar doing? Rising (below). Which gets back to the theme "Nothing Matters Until It Matters". So far, this is just one more risk being ignored, however, when the dollar hits escape velocity, underwear will once again be stained on Wall Street...

Extend and Pretend: The High Cost of Delusion

I admit to being somewhat inconsistent on reporting the ongoing costs of "Extend and Pretend". I am referring of course to all of the costs incurred since the 2008 bailout to keep this shit show levitated. Sometimes I only count the U.S. costs, other times I add in the trillions printed by other global central banks. That said, at least I make the attempt. The conventional wisdom at large is that the 2008 bailout is a thing of the past. This delusion, that somehow 2008 was an isolated event, systematically ignores the key costs and risks that have grown unchecked in the meantime...