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.

Sunday, May 29, 2016

MEGA Crash From All Time Highs: Base Case Scenario

Contrary to Barron's assertion, the last time stocks crashed was last August, when Dow futures were Limit Down at the open:

China was devaluing their currency

Oil had finished its Spring rally at the end of May

Market breadth was weak

The Fed was preparing to tighten

Global markets were in RISK OFF mode

Volume and volatility were extremely low

What's changed? Nothing.

EXCEPT, now technically the market is far weaker. Relentless sector rotation has concluded with Defensive/Recession stocks, which are now rolling over.

And of course short-covering: