Unfortunately, no one told these historical illiterates, that it's already been tried.
This past weekend Charlie Munger, Warren's Buffett's second-in-command called crypto currencies "wealth created out of thin air". He also said that Bernie Sanders had accidentally "won" the war on inequality, because future generations will find it impossible to repeat this same level of alchemy.
"The difference between the rich and the poor in the generation that's rising is going to be a lot less"
A billionaire monetary crack addict dispensing sage advice about wealth created out of thin air. Sadly his entire legacy will be absolutely demolished in the impending meltdown, as will Buffett's. There is such a thing as living too long.
The ultimate irony of this Wall Street recovery which massively favours the economic cyclicals over last year's Tech/deflation trades, is that the asset bubble is now the biggest risk to the economy. This market is far too over-leveraged and overbought to sustain a RISK OFF event, the likes of which is long overdue. In other words, the market IS the economy.
Among the cyclicals, Transports are leading, what else?
The Dow Transport index has now been up 14 weeks straight and is two decades overbought. We see via the lower pane that the signature of this bounce is deja vu of 2009/2010. Except of course this time, the index is at record highs and is far more overbought than last time - compliments of central banks and BTFD investors who collaborated on the shortest bear market in history at 16 days.
Now, celebrating the anniversary of the May (6th) 2010 Flash Crash. What could go wrong?
Looking at the VIX from that same era, we see that the Cryptocracy has grown more and more complacent over time.
Due to the shortest bear market in history, the VIX futures net speculative never actually turned positive. Unlike every other volatility event of the past decade.
I would be remiss if I coined the new term "Cryptocracy" and did not make a connection back to crypto currencies.
Here we see that the financial asset managers, the Rydex asset allocation ratio, and searches for "Crypto" are now reaching new highs at the same time. Deja vu of 2018 Vixplosion.
In other words, today's financial advisors are in the same league as crypto con artists. Both spinning a falsehood of recovery.
One thing stonks and Bitcoins have in common is that when the meltdown begins, the machines will go offline, leaving no one on the other side of the trade. And then all bubble assets will discover their "true value".
In summary, it's no accident that all of the cyclical industries are now seeing ludicrous all time high valuations. These are the industries that are most prone to salesmanship and ludicrous predictions for the future: Real estate, car sales, financial investments, fracking etc. etc.
This is a con man's paradise, and they are taking full advantage to ensure that consumers and investors have maximum FOMO. Which is why they all agree that "inflation" is the biggest risk. They want us to buy now before prices go up later.
In the event they have purposely created panic buying in every asset class.
Soon all of their lies will turn to dust and blow away. Today's hot air "inflation" will morph to permanent deflation.
This rampant delusion that the post-pandemic economy will be far better than the pre-pandemic economy is the dumbest fucking lie in human history. Those who believe it are addicted to bullshit. When their hot air bubble bursts, these people will finally realize they can no longer afford this level of delusion.
Then, they will be forced to settle for the inconvenient truth for the first time in their lives.
