Free Money

Minsky, Myopia, & Why The S&P 500 Is A Bloated Corpse

"Natural bodies can tend towards equilibrium, i.e. death. Markets cannot. They’re doomed to flatline, and then to always come back from near death experiences. They tend to do so in violent ways though. When volatility at last returns, so will price discovery. It won’t be pretty."

Flatliners - Dead Market Walking

"...all risk has been flat-lined in this grand central bank experiment...  but any trader staring at the tape knows that we find ourselves in the most compressed price environment in history. This is not normal, there’s no heartbeat..."

Odey Sees "Terrifying" Outcome Between Arrival Of MiFID, End Of QE

Less trading, less price discovery, less efficient markets. The cost of capital should rise. What is terrifying is that MIFID II is arriving when thanks to QE and the sight of endless cheap money, companies’ shares are at their most expensive. Hindsight is going to have a field day.

"Today, The Music Stops..."

"Today the Fed should formally announce that after nearly a decade, it’s going to start vacuuming up a lot of that money it printed in 2008...Bottom line: they’re going to start cutting the lights and turning off the music...And given the enormous impact that this policy had on asset prices, it would be foolish to think its reversal will be consequence-free."

"Dear Jamie Dimon..."

"This is the begging-for-the-overthrow-of-a-corrupt-status-quo economy we have thanks to the Federal Reserve giving the J.P. Morgans and Jamie Dimons of the world the means to skim and scam the bottom 95%."