We covered this on Monday. Spitznagel might as well have told Maria the catalyst will be failure of NASA's Curiosity rover to find benevolent life on Mars willing to securitize rock extracted from Mount Sharp, thereby providing an avenue for Ponzi Finance to continue sustaining the ruse claiming the trans-Atlantic banking system is anything but hopelessly insolvent.
Yet what if 40% is wishful thinking? What if the banking system is about to collapse with no hope whatsoever of recovering under the current paradigm?
This is a question Janet Tavakoli of Tavakoli Structured Finance effectively raises in a piece titled, "Currency Manipulation and Derivatives." You see, we are not alone perceiving today's risk is much like that sinking the Florentine banking empire of the 14th century. Not that Janet is openly making this comparison, yet for all intents and purposes she in fact is.
Maybe ... just maybe ... we are being much too kind calling equities "garbage." After all, one man's trash is another man's treasure, and this fact Capo Confetti and crew are hell-bent on proving as fully as humanly possible. Still, we can be positively certain this will end badly. Just how badly no one can say with any certainty: not us and not Janet Tavakoli.
Nevertheless we might wisely entertain the credible possibility all eyes today fixed on the exits will one day find every exit blocked. There's a chance we might wake up one fine day in the not-too-distant future to learn markets have been closed for an indeterminate period. It is then the "saving the world from another Great Depression" crowd of sovereign treasury subversives will find itself woefully trapped and defeated.
The question then will become who takes their place? It had better be the Tax Wall Street Party or markets very well might never again open...
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