Sell, Sell, Sell…….The Central Bank Madmen Are Raging
The global financial system has come unglued. Everywhere the real world evidence points to cooling growth, faltering investment, slowing trade, vast excess industrial capacity, peak private debt, public fiscal exhaustion, currency wars, intensified politico-military conflict and an unprecedented disconnect between debt-saturated real economies and irrationally exuberant financial markets.
Yet overnight two central banks promised what amounts to more monetary heroin and, presto, the S&P 500 index jerked up to 2070. That is, the robo-traders inflated the PE multiple for S&P’s basket of US-based global companies to a nose bleed 20X their reported LTM earnings.
And those earnings surely embody a high water mark in a world where Japan is going down for the count, China’s house of cards is truly collapsing, Europe is plunging into a triple dip and Wall Street’s spurious claim that 3% “escape velocity” has finally arrived in the US is soon to be discredited for the 5th year running. So it goes without saying that if “price discovery” actually existed in the Wall Street casino, the capitalization rate on these blatantly engineered earnings (i.e. inflated EPS owing to massive buybacks) would be decidedly less exuberant.
In truth, nothing has changed about the precarious state of the world since yesterday. Except….. except the Great Bloviator at the ECB made another fatuous and undeliverable promise—- this time that he would do whatever he “must to raise inflation and inflation expectations as fast as possible”; and, at nearly the same hour, the desperate comrades in Beijing administered another sharp poke in the eye to China’s savers by lowering the deposit rate to by 25 bps to 2.75%.
http://davidstockmanscontracorner.co...Mid+Day+Friday
It's all an illusion. And since Nov 16th or whatever day it was, your bank accounts are liable for bail-ins where previously they were insured by fdic, you're now the insurance for when your bank gambles with your money and loses. You lose, not the bank. Before bail-ins, there was a long drawn-out process where the banksters used scare tacitics such as threatening martial law if the banksters gambling losses weren't covered by federal bail-out money. Wich of course is your tax dollars. So now that long drawn-out dramatic show of fed bail-outs has been replaced by merely editing your bank account directly and immediately, bypassing the white house, congress, news reporters, tv and radio coverage, etc.
This also means the fedz gave your tax dollars to banks....... so the banks could lend it back to you at interest. And of course with fractional reserve banking being what it is, the banksters loaned out multiple times the total dollar amount they were given by the fedz. Why can't you do that fractional reserve trick, get paid $10 and write a check for $10,000?
So, nothing has improved since 2008, matter of fact, when the crash comes it's guaranteed to be far worse than 2008. Also, the reason for the cheap gas right now is the nwo boys are hitting Russia with low gas prices because Russia sells a lot of oil, hence reducing the demand for Russian oil as well as forcing Russia to reduce its oil price to remain in the market. So at least we can enjoy cheap gas at the eventual cost of war with Russia.
See here fo more bail-in goodness;
http://www.maxkeiser.com/tag/bail-in/
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Originally Posted by imanaknut
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