Arrogant Delusion. The Solution For Wealth Inequality

Globalization runs on arrogant delusion. The assumption that there is a born and bred class of people somehow better and different than everyone else. The ones who will always be in control. An imaginary separation from reality, abided by opportunistic exploitation and blinded by self-absorption. For the first time in modern history, that assumption will now be tested...

Club Orlov: License To Kill

"As the endgame approaches, those still nominally in charge of the collapsing empire resort to all sorts of desperate measures...A special-purpose ruling class—one that is incapable of understanding that the end-game is approaching"

The Dow now features a broadening top within a broadening top, for double downside acceleration. The casino is now totally out of control, led by a fragile handful of massively overbought and overowned "stocks" and run by momentum algos...

Broadening top

"It is a common saying that smart money is out of market in such formation and market is out of control"

What today makes America "exceptional" relative to the rest of the developed world, is society's willingness to tolerate extreme wealth inequality, all in the name of "capitalism". The same capitalism that exploded in 2008 and had to get bailed out at a cost of 9 million jobs, a doubling in U.S. Federal debt, and $3.5 trillion in printed money. The problem with bailouts is that they don't fix the problem, instead they incentivize more of the same corruption and criminality. Fast forward one decade and the U.S. now has the income distribution of a Third World country. In other words, what remains of shattered American capitalism is money printing, mythology, and a brainwashed aversion to the word "socialism".

In the meantime, the money printing fake wealth system that replaced cratered markets post-2009, has only served to exacerbate the problem that imploded markets in the first place. Now, instead of markets determining outcomes, wealth distribution is decided by central bank fiat. Whereby the ultra-wealthy get ultra-wealthier and everyone else gets robbed blind by serial asset bubbles. By expanding wealth inequality, central banks have further inflated the arrogant delusion bubble, now wholly cleaved from any sense of reality. Blind to risk.  

So it is that the casino has come to mirror the inequality of society - wherein a small cadre of mega cap stocks keep growing larger in size, while the rest of the market withers and dies.

"The Russell 2000, which tracks small-cap companies, is trading at its lowest relative performance to the S&P 500 since the financial crisis"

CNBC: Bob Pisani

The S&P 500 tops 3,000. What a difference five years makes.

"...The market today is radically different from 2014. Investors have played favorites in a big way."

Big tech and FANG names dominates the winners, including Amazon, Netflix, Microsoft, Facebook, Apple."