Thursday, June 16, 2022


The age of rampant fraud and corruption is set to explode in the faces of true believers who are now doubling down on criminality. What can they say but "No one saw it coming"...


Since the pandemic recovery began we've heard one lie after another, non-stop for two years. First we were told this was a whole new cycle, rising from the ashes of the shortest recession and bear market in history, following the LONGEST expansion and bull market in history. Then we were told that post-pandemic hyper valuations were justified by ultra-low interest rates and a post-pandemic economy strengthened by forced lockdowns. All of that of course was a massive lie. The pandemic stimulus merely pulled forward demand while the forced lockdown collapsed the supply chain and tightened the job market compliments of 20 million mass layoffs in the U.S.  Subsequently, ongoing China lockdowns and the Ukraine war created further supply-chain disruptions that continued since the pandemic. In addition there was rampant speculation in every corner of every market fueled by record amounts of central bank liquidity.

Now with global monetary policy tightening at the fastest pace in history, bulls are trapped in an end of cycle recessionary bear market. History will say that the pandemic was the melt-up phase of the longest bull market in U.S. history.

And yet even at this lethal juncture the massive lies continue, and by necessity grow larger. There is no bullish case at this point in time. Buying overvalued stocks in a recession with a panicked Fed making up monetary policy on the fly is financial suicide. As of this week, ALL of the 2022 economic predictions made by Wall Street at the beginning of the year are now NULL and VOID. FAR too optimistic.

STILL, no sign of fear or capitulation:


There have been more pump and dump schemes during the past two years than during the past two decades combined. In addition to Tech stock and housing market bubbles, there was an EV bubble, a cloud stock bubble, meme stock bubble, crypto bubble, Ark ETFs, and IPO/SPAC bubbles. And in 2022 there is now a massive commodity bubble. Which is a big part of what is driving what I call Ponzi inflation. Those bulls who think that commodities can't collapse like a cheap tent, were not around in 2008.

In this post-2008 cycle every manner of criminality has been arrayed against the public. Millennials are about to be exploded from every direction at the same time - homes, stocks, cryptos, salaries - ALL inflated by the pandemic.

An entire generation is now the new subprime. They are currently getting crushed like a tin can while the mainstream financial media says NOTHING other than to regale them with more fairy tales. 


WE did our part to warn the sheeple. Unfortunately, you can't warn zombies. I've tried. This monetary sponsored vacation from reality went on far too long and eventually sucked almost everyone into Disney markets. 

We have now reached the point wherein all of these MASSIVE lies will spontaneously explode at the same time. Trapping untold numbers of gamblers in their various beloved Ponzi trades. 

This week, Bill Gates said that Crypto is 100% a greater fool's game. That's true. However, at these valuations, stocks are a 99% greater fool's game with the benefit to the 1%. 

We also learned that the CPI is expected to ACCELERATE for the next four months in a row: 

Which means that the Fed has been FULLY cornered into tightening until they final implode markets sooner than later. Just as Millennials finally came to believe they will be bailed out of ANY market scenario, in 2022 the Fed has taken off the training wheels and pushed them straight off the cliff. 

So far, there has been no sign of panic or fear in these markets. However, it's only a matter of time before Millennials capitulate en masse because they've been trained by the Bernie Madoff school of investing to trade by consensus. When that happens  they will figure out the sell order for the first time in their lives.  

But when they all reach to sell at the same time, the machines will explode. There is no way that Skynet can handle that much selling all at one time. 

Remember February 2021? Millennials almost crashed the markets last year:

February 2021:

‘What I would like to point out here is that 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.’

What took place last year will be minor compared to what is coming. Here we see Nasdaq down volumes have been climbing throughout 2022 back to the same dangerous levels from last year:

When Millennials get trapped in the casino and watch their fantasy wealth get obliterated, they are going to shit a brick.

THEN they are going to fall out of love with Wall Street and go back to the streets where they were ten years ago at the post-2008 nadir. Where they are going to BLOCK every single bailout attempt in Congress. 

And then EVERYONE ELSE is going to shit a brick.

What I call "BAILOUT RISK". 

And when that happens, every REVISED economic forecast being made this week will be off by a MINUS sign. 

After that, I predict the stock market will be DEAD MONEY. Meaning it will trade in a very wide trading range, but it will never be trusted in this lifetime. You can rent stocks, but you can't own them. 

In summary, I lowered wave '3' down to the ~50% decline range to reflect my INCREASED bearishness due to the simultaneous bear market, record tightening, and recession all confirmed in the exact same week.