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Breadth Breaking Bad - Where It All Went Wrong For The Fed
With the S&P 500 just over 1% from its all-time record-high, it is perhaps shocking that only just over 50% of the index members are trading above their 200-day moving average. Worse still, the divergence between index price performance and underlying component performance has never been greater as The Fed's last money-printing effort drove a wedge between the have-nots and the have-yachts...
The S&P 500 (with its 108x P/E Facebook and 928x P/E Amazon) is practically back to record highs but underlying breadth remains a disaster...
But, when we look at the entire US equity market - based on the world's largest stock index NYSE Composite - this is a story that began when The Fed unleashed the $85bn per month QE3...
As is clear, the massive surge in performance of the overall indices was concentrated more and more among the names underlying the index as the free money party from The Fed only benefitted the biggest.
And that's where it all went wrong for The Fed as their plan to re-wealth the world failed to trickle down yet again.
Charts: Bloomberg
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Bada Bing. Throw a volume histogram against that. = head explode.
Imagine if they print for 2 years and all those under 200 ma hit new highs again.....
Burp
Meanwhile Facebooks market cap just reached...
Three... Hundred... Billion... Dollars!!
WTAF?!
It's a website and a phone app is it not!?
It's an NSA information gathering company disguised as a marketing and advertisement company. What it's worth to the market is probably only a fraction of what it's worth to the government.
So it's went wrong for them and their cronies? OK, so how can I make it go this kinda wrong for me?
According to the stock market Facebook is more valuable than Wallmart.
Think about how much money Wallmart takes in. Think how much money Facebook takes in.
Ridiculous.
They should have never started printing money in that motorhome.
Their plan was never to re-wealth the world. Their plan was to re-wealth themselves.
"their plan to re-wealth the world"
You mean the plan to rewealth the wealthy, which succeeded.
Oddly enough, the price of gold in FRNs uncoupled right about the same time.
Full retard, global Weimar, etc.
The 90% better hope the 1% taste like chicken.
"Cap'n Yellen, we're taking on water, and there be shoals ahead!"
"Arrrrr, buck up ye knaves, Hard a'port, Away the Plunge Protection Team, launch all media leaks, ready the printing presses, and get Admiral Blankfein and Commodore Dimon on the horn..."
"...and bring my cabin boy."
.....batten down the silver and gold!!!
They are just protecting the underlying bubble assets for the benefit of the wealthy at the expense of everyone else - sugar coating it as the "right thing to do" when what they have managed to do of course is make the same underlying problem orders of magnitude worse. Which of course begs the question of whether or not they are just making this all up as they go.
End the Fed.
"It's all about the government and your relationship to it now."
Old NoDebt observation. More true than ever now.
They seem to have fooled some people of their intentions.
I don't know about the rest of you schlubs, but I feel like I was trickled on. Trickled on, shit on, vomited on, and just about dvery other gross thing you can think of by the bankers and their pet politicians.
neo-Keynesian economics is wealth redistribution, from productive labor to aggregations of extant capital - the rich, and the banks.
And that's all it is.
debt-money fiat + fractional reserve debt-money creation + compound interest means not only that the rich get richer because they have more capital in the first place, they get richer, faster, over time.
And when the top 0.1% have 95% of all wealth, there will still be 20 year olds clutching their tattered copy of "Atlas Shrugged" railing against "socialism" and dark-skinned baby-mommas. Just as Rupert Murdoch and friends want them to do.
"their plan to re-wealth the world failed"
let me correct, what it should say: "their plan to destroy the bottom 95% and further enrich the top 1% has performed exceedingly well. mission accomplished"
Trillions in Fed Easy Money just made the rich even richer, the working classes poorer and the lazy poor more comfortable. Exactly as planned and predicted!
They will print and "pay" negative interest till the money machine catches on fire...or the rabble storm the gate! Or someone like Trump Removes them from a position of authority.
Though a double peak forming does excite one...as if charts matter in print world!
So QE4 just in time for Christmas...what a wonderful fucking time to be alive.
No one responsible for this gets out alive....nor dies of natural causes such as old age.