Pretty interesting times I’d say. When CNBC throws the towel in and acknowledges that Wall Street has simply resorted to denying the data is real well nothing matters any longer. Anyone still sitting with their nest eggs in these markets is simply nuts. That cannot be overstated. The reality is that the data is so much worse than what is being reported. It always is. And so to accept the story line that the Fed and the government are actually under-reporting the well being of the economy is pure madness.
It amazes me the fact that people construct their entire world perception around a bunch of banking and political shysters that have done nothing but steal from them and leave the nation bankrupt. Yet day after day so many of us will swear up and down that these policies have our best interest in mind. It is a psychological phenomenon like no other. Truly mind blowing.
There truly has not been one piece of economic data (macro or micro) that would excite a long only investor this year. Nothing. And yet the Wall Street meme is “who gives a shit, just keep that money pumping”. And so there it is we’ve now fully actualized the pyramid scheme. There is nothing left to keep this train going except a continuous stream of price insensitive money being pumped into the bottom of the pyramid. Included in that price insensitive money is your 401K.
There is really nothing left to be said. Hope it all works out. I’ll be back to play when it all comes tumbling down. Peace.
Well there is one last thing to say….. Michael Hartnett, CIO of BoAML, you’re a fucking moron. That’s right you heard me. You’re going to suggest that “Global profits are down 4 percent since February,… payrolls decelerated and the latest US GDP growth rate was a pitiful 1.5% in Q3. And the level of US inventories is unambiguously recessionary” while also telling clients that we are in a period of “deflationary expansion”?
Let me explain what deflationary expansion is; it’s the flat screen television market over the past 10 years. Prices go down because of efficiencies and that broadens the market. Spiraling into the abyss because there are no breadwinner jobs left as all capital has been reallocated from fixed capex and labour into buybacks and Fed guaranteed equity markets is not deflationary expansion. Its a fucking recession. You idiot.