Ponzi World (Over 3 Billion NOT Served)

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.

Thursday, March 3, 2016

The Fair Value of Shock Doctrine is Zero

The Central Bank invincibility bubble is bursting...

The "Fair value" of the S&P 500 in 2009 was 100, circled below. About 90% lower than it is today. The fair value is based upon an historical Price / Earnings ratio of 15.

The red line shows the value of the market level when the P/E is 15. Currently, fair value is 1360 which is 30% below the current level.

However, as we learned in 2009, ex-stock buybacks, mass outsourcing, corporate debt binging, money printing, and bailouts, true fair value is closer to 100...