Tuesday, July 13, 2021

World On Fire

Record temperatures. Cycle high inflation. Record speculation. Record stock issuance. Sadly, no one informed these people there is no such thing as Ponzi retirement...

We just learned that June was the hottest month on record in the U.S. At the same time, first half stock inflows were the hottest on record, and IPO issuance in just the first half hit a FULL YEAR record:

The market is on fire.

The Robinhood IPO which was sidelined earlier this year due to the Gamestop debacle, has now been opportunistically timed for the lowest seasonal volumes and liquidity of the year. Prime time for market manipulation at all time highs. Peak financialization is occurring at a time when market fragility is also at record extremes. Markets have been in a widely ignored liquidity death spiral for years. 

June 23rd, 2021

"Look, for example, at what has happened to trading in futures contracts on the S&P 500 index — typically the world’s most liquid equity index futures. Over the past decade their liquidity, as measured by market depth, has collapsed by around 90 per cent. This pattern is repeated across asset classes and regions"

"Lower liquidity, tends to amplify moves and exacerbate volatility"

History will say that the Millennials were reluctant to invest in stocks. So, Wall Street slapped a gamified interface onto a mobile app called "Robinhood" which turned out to be a Candy Crush gateway to Citadel. The world's largest and most profitable hedge fund and payment for order flow dark pool.

All packaged as the "democratization of markets". 

"It’s sometimes hard to identify era-defining moments when they happen; usually you can only really see them after the wave rolls back. Helpfully, Robinhood has given us a high place to stand so we can see a little farther"


As Baby Boomers retire in record numbers, it became necessary to entice reluctant Millennials into these fraudulent markets in order to become the end of cycle bagholders of record. Which means that we are witnessing the largest transfer of risk in human history. One must ask themselves, what type of  nihilistic society throws its own children under the bus - Whether talking about the stock market or Social Security defunded by serial tax cuts for the ultra-wealthy, this society of assholes is guilty as charged. 

Sadly, no one informed these people that there is no such thing as Ponzi retirement. And the financial services cartel is certainly not going to let them in on that little secret. Every other ad these days is for retirement planning, wedged in between ads for erectile dysfunction.

Today we learned that JP Morgan profit DOUBLED while revenue fell. How? Because loan loss reserves were reduced. Another sleight of hand that is widely ignored in this house of mirrors. 

This entire fraud is now running on glue fumes, and collapsed summer volumes and volatility. Can it hold up until the Robinhood IPO or will it spontaneously explode at all time highs?

"Bull market"

Put it this way. 

If THIS is the GOOD news, imagine what the bad news will look like.

Today's serial psychopaths have designed the ultimate financial death trap. When the algos front-run record Robinhood newbies out the margin call door, that will be all folks.