"Speculation
funded by "money" conjured out of thin air--has reached a level of
denial that can only be termed psychotic."
Charles Hugh Smith
Stock Market Crash 2020: Welcome To The End Game
If this chart doesn’t make you think the crash is coming soon, then probably nothing will:
The Nasdaq is on its final run and is going vertical, a classic end of bubble move. This is trader heaven and turns into speculator hell for those who think that markets do grow to the skies. It could go up a long way in price but it won’t go for long in time. It could last to Christmas, it could fold tomorrow, but my feeling is that unless this bubble is cut down by the Fed, the final move will be large and quick.
DYI: It’s too late whether
the Fed’s pop this bubble or this house of cards falls under its own weight
this market will once again CRASH!
The attempts by the government to pump up the economy with new money is resulting in it going straight into equities and straight into the tip of the equity spear, the giant high beta story stocks. This is a malfunction of the QE mechanism that supports asset prices and slowly trickles the benefits of this support down the pyramid of wealth. Now the game is up because the new money is going straight into this bubble of financial assets that are spiralling up out of control.
If we now get a Nasdaq bull vertical that is the end of the chapter of the process, it will be followed by a devastating crash as everyone dashes to the exit in a blaze of wealth destruction.
Welcome to the Crazed, Frantic Demise of Finance Capitalism
When scams start
unraveling, the scammers become increasingly frantic to maintain the illusion
of legitimacy and the delusion of guaranteed gains that are the lifeblood of
every scam. One sure sign that the flim-flam is about to collapse is the manic
rise of FOMO, fear of missing out, as the scammers jam the Ponzi scheme's
stellar returns to new extremes.
How did outright fraud
come to dominate our economy? The answer is simple: infinite greed plus the
decline of gains from "real capitalism," i.e. increasing productivity
via producing goods and services.
The appeal of something for nothing is
irresistible when "money" can be printed / borrowed out of thin air
and used to run a fraud that exploits human greed.
Like every good Ponzi
scheme, those invested in the scam promote the fraud and cajole new marks to
sink their cash into the "guaranteed gains" scheme because everyone
already in the fraud will lose if there aren't enough new marks joining to keep
it from collapsing. That perfectly describes the entire financial media, the
financial "industry" and everyone in it.
The cognitive dissonance required to ignore the widening gap between the
real economy and the fraud's basic machinery;—Speculation funded by
"money" conjured out of thin air--has reached a level of denial that
can only be termed psychotic.
DYI: How far down percentage
wise could this market drop? With
valuations at these extremes a decline of 65% to 80% [may take 2 or more cycles
to complete] is very possible.
Eventually this market will leave its double secular top and over as
long as a decade of time move to a secular low with the market under Shiller PE
of 10! I call this THE GREAT UNWINDING!
The appeal of something for nothing is
irresistible when "money" can be printed / borrowed out of thin air
and used to run a fraud that exploits human greed.
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