Banking System Subsidy Fail ~ The Risk Averse Alert

Tuesday, October 01, 2013

Banking System Subsidy Fail

Don't look now, but "someone" is squeezing the subsidy to a capital starved banking system...



As Confetti's policy aiming to shed "excess capacity" evidently is not taking out refiners fast enough, a double whammy is delivered by Team Fraud's anthropogenic climate change failing to deliver devastating hurricanes to the Gulf coast. What's "someone" to do, then, but apply the screws to a banking system lacking any middle ground. By way of diminishing volume on the unleaded gasoline spot market we can just hear the U.S. economy grinding to a halt.

Prior to '08 the name of the monetarist monkey game was inflate or die. Now that the game requires overt hyperinflation out of utter necessity following collapse in confidence in the banking system's means to create credit, the name of the game now is just die. The open question—the only question—has been when. If now, then the S&P500 has some catching up to do, relatively speaking.


Word on the Street
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