Tt has become quite clear that the Fed neither has the intention, nor the market mechanism to do any of that, and certainly not in a 3-6 month timeframe. Which may explain the Fed's hawkish words on any potential surge in market vol. After all, if the nearly $3 trillion in excess reserves remain on bank balance sheets for another year, then the only reason why vol could surge is if the Fed lose the faith of the markets terminally. At that point the last worry anyone will have is whether and how the Fed will tighten monetary policy.
It is generally conceded that we are living in an era of Peak Everything: peak central bank omnipotence, peak powerless of the non-elites, peak wealth inequality, peak media-induced delusion, peak market-rigging, peak bogus official statistics, peak propaganda, peak bread and circuses, peak deception, peak distraction, peak sociopathology, peak central statism, peak debt, peak leverage, peak derealization--need we go on? Peaks generate bubbles. Bubbles reach extremes and then they pop. What do we do when the bubble economy cannot be reflated?
An Adventure of Fundraising, Massive Disintermediation and the Confrontation of the Most Powerful InterestsSubmitted by Reggie Middleton on 11/19/2014 08:59 -0500
There's always more than one way to skin a cat. Follow me as I raise a war chest of cash from the establishment... To disintermediate the... Establishment!
"Back in the heyday of the old Soviet Union, a phrase evolved to describe gullible western intellectuals who came to visit Russia and failed to notice the human and other costs of building a communist utopia. The phrase was “useful idiots” and it applied to a good many people who should have known better. I now propose a new, analogous term more appropriate for the age in which we live: useful hypocrites. That’s you and me, folks, and it’s how the masters of the digital universe see us. And they have pretty good reasons for seeing us that way."
Add easy profits from needless tests to defensive medicine and no cost controls or real competition, and we have the perfect formula for waste, fraud, profiteering, bad medicine and dysfunctional, unaffordable healthcare.
Something is dreadfully wrong in America.
"The market has been dodging boomerangs, not bullets, and they are likely to come back harder for it." Importantly, rich valuations here cannot be “justified” by appeals to current interest rates or profit margins unless that justification carries with it the assumption that both zero interest rate policy and cyclically-elevated profit margins will be sustained for decades, coupled with the assumption that economic growth will proceed at historically normal rates.
Words, numbers, earnings and more at one time had a believable meaning. But that was a very long time ago. So long – even the news media seems to have forgotten what the meaning of words like business, free markets, capitalism and others once meant. Now it's nothing but a televised version of crony styled capitalism cheerleaders rolled out one after another in such procession P.T.Barnum would be proud. The problem is the more they talk – the more people tune out. For no amount of words stated matter any longer. Nor do the myriad of “charts” “reports” or so-called “facts” they hold up as evidence. No one is listening or watching. And what’s worse? Nobody now cares.
In The West today we see mass delusion everywhere. People seem to believe their governments are almighty beings capable of performing magic - water into wine, debt into wealth. Here are some of the biggest myths we see in the system today...
The inevitable result of the centrally planned Asian Miracle Model is credit bubbles and the crippling misallocation of capital in Building Bridges to Nowhere.
Brace yourselves, the zero sum game is on like Donkey Kong.
Endless War Is the Agenda
Our world, our life, has been built on debt and propaganda for many years. They have kept us from noticing how poorly we are doing. But now a third element has entered the foundation of our societies, and it’s set to eat away at everything that has – barely – kept the entire edifice from crumbling apart. Deflation.
Hiding in econometric obscurity, in an area of research so boring no economist would dare tread, did the government knowingly encourage the adoption of a dubious economic theory that would likely bias inflation downward? If so, it was a good bet.
Throughout history there have always been major shifts in the global financial system. Reserve currencies change. The way people engage in commerce changes. The rules of the game change. This time is no different. And we’re currently experiencing the early stages of yet another historic shift.