The Risk Averse Alert

Today we learn the Confetti Fed's drive to be the gold standard in insolvency will be turbocharged once it begins its tapering. Evidently, the Fed will focus all its tapering on Treasuries while keeping MBS purchases intact. Brilliant! Beyond broadcasting in neon lights the fact that, the entire banking system over which it lords is gone, transparency exposing the Fed a criminal enterprise will only be furthered as a result. We certainly must wonder, too, what this "forward guidance" will do to accelerate the push in Congress to reinstate Glass-Steagall.

Now, for the sake of continuing their leveraged buyout of America we might expect insolvent albatrosses to pick up the slack for Confetti, but at the cost of further curtailing their lending (you'll have to read the article to understand). Still, this assumes a negative feedback loop can be somehow subdued were rates on credit securities—particularly U.S. Treasuries—to skyrocket. There are so very many systemically threatening vulnerabilities, while only so much hot money to go around. Likewise, whether the criminal bailout of fraudulently created mortgage backed securities could sustain appearances of the banking system's solvency in the face of distress-driven, global panic somewhere high up in the capital structure is entirely doubtful (and remember, at the highest rung in a Dodd-Frank, Title II "bail-in" are derivatives whose notional value is in the quadrillions). Just like everything else in our midst today we simply must assume unsustainable arrangements have a larger purpose. To wit, a "leveraged buyout" whose margin collapses increases odds of distressed sales serving to consolidate assets into still fewer hands.

Truth is the Big Lie venturing a big war exposes a banking system positively desperate for tribute, and fast. On that note, kudos to Team Fraud's intelligence services whose "Syrian Electronic Army" (trained at Trump U?) were the joke of the day in the push for still more blood and treasure needed to keep an insane oligarchy in the driver's seat in their race to destroy sovereign nation states the world over. Of course, this effort comes at the inevitable, necessary expense of pitting disposable assets against one another. Such is the price of all being stuffed with trash, a reality making today's Venetians extraordinarily weak in fact and quite vulnerable to containment were the United States Congress only moved to "Seize the Fed!"



First evidenced above we see how yesterday's decline was not as technically damaging as was the market's decline on August 15th, when the 3rd wave of 5 waves down from early-August peak largely unfolded.

Presently, we should keep our eyes pealed for some indication suggesting a sustained lift is likely forthcoming. This possibility would be heightened should technical circumstance like that registering in June, and April before that, come to pass (marked by red dots). Having detailed this same circumstance several times before, I'll skip repeating specifics and tonight defer to a general thought in the context of "the leveraged buyout of America" linked to above.

The fundamental facts Ellen Brown discloses in her article certainly have been technically substantiated to no end here over the past several years. Be it fading volume indicative of a retreating retail investor, or the tricks of the trade goosing the market higher exposing insolvent albatrosses increasing their stake at the bottom rung of the capital structure (today's JCP pickup by Citi being a timely case in point) while at the same time insisting of those among a persistently fading demand they pay up if they, too, want a piece of this trash. All well and good is a market increasingly vulnerable to falling of its own weight in the grand scheme of what has passed following 2008's collapse, yet if circumstance allows continuance of what we otherwise predominantly have found to be technically unjustified, then we are "forewarned" in a manner like that displayed above in April and June (and many times previously, which we have documented). So, tonight, knowing more about "who" is behind this, while strongly believing their gig is positively unsustainable, we still are alert to possibility their ruse could continue.



I thought it might be useful to contrast conditions on "the stock exchange for the next 100 years."

First, yesterday's NASDAQ trade was technically more damaging than on August 15th, unlike what occurred on the NYSE. Still, NASDAQ continues holding up like a hope-filled champion, at least relative to the NYSE.

And second, much like on the NYSE advancing issue participation coinciding with NASDAQ's advance this year has been fairly muted, save for the first day of trading on January 2nd. At the extremes we see a good bit more declining issue participation coinciding with NASDAQ declines, too. Normally, we might suspect this a healthy indication of fear accompanying NASDAQ's advance. However, where are animal spirits?

Or, asked another way, what will it take to pique an increasing retail interest? As Confetti has, as intended, miserably failed, we have the answer...

SEIZE THE FED and start financing a physical economy worthy the 21st century already!!





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