We Have Now Entered The No Bailout Zone

When the shit goes down deja vu of 2008, Warren Buffett will pick up his hotline to the White House only to find Elizabeth Warren at the other end of the line. And then the underwear will be mighty stained...

I was a conservative most of my life, until I realized it was always going to be about enriching billionaires at the expense of the middle class. And then I wanted nothing to do with it. I don't do continual descent into squalor.

Today's fair-weather friends of capitalism are destined to have their faith system tested by fair-weather algos. Both will fail simultaneously in a cataclysmic fashion. This time when the "capitalists" come begging for a bailout, they will be met with epic rage instead. At that point the age of unfettered hubris will end. 

The right wing is pounding the table on this fake "inflation" theme. They see it as Biden's Achilles heel. They have bought their own delusion hook, line, and sinker. They're locked in a circle jerk of link-minded dunces with no way out. Too bad no one could warn them - not a net 5 IQ in total when you include the negatives. What happened to honesty and integrity? Did that go out the window along with democracy? When the entire fake news formula is predicated upon expanding the base of useful idiots, there is no ground floor for buffoonery, there is only  a death spiral lower. 

One thing we know vis-a-vis the late 2018 debacle, is that the Fed won't reach for the bailout switch until at least -20% lower. Which is deep in marginal call obliteration territory. At that point ~$1 trillion of leveraged Tech stonks will get dumped into a no bid market.

Picture GameStop x 20.

"We have come dangerously close to the collapse of the entire system and the public seems to be completely unaware of that, including Congress and the regulators"

At the same time, or likely sooner, what remains of the crypto bubble will be exploding amid rampant outages the likes of which we got a taste of last week.

“Coinbase always goes down”

“It’s kind of funny, it’s a forced hodling by these exchanges because you can’t sell” 

Hodling is not a typo, it's what drunk Bitcoiners call holding until bankrupt. And if they can't sell Bitcoins, they will sell something else, like Tech stonks and Grandma's china.

Suffice to say, all of this dislocation won't be limited to one time zone. It will be a 24 hour rolling event.

And then there will be the Emerging Market currencies imploding vis-a-vis the sky-rocketing dollar. It's at that time that the inflationists will implode spectacularly.

Commodities will be limit down.

"Lumber futures did something remarkable yesterday. Trading in the benchmark “random length” contract for July delivery was halted twice on the Chicago Mercantile Exchange (CME), once for a limit down move, then for a limit up. For those like me with a trader’s mindset, that is an interesting little tidbit, but the significance of yesterday’s trading in lumber doesn’t end there. The recent moves in that market are indicative of what is going on elsewhere, and what happens in lumber from here may well give an early indication of what we can expect in the stock market in coming weeks"

Collapsing Treasury yields will implode the Cyclical bubble

Picture what happens to these stonks sans bailout

In summary, a wealth "tax" is coming and it's called 

#NoBailouts#