I had a conversation with a friend today. Smart guy, reads religiously, but hates religion. Somehow we got on the topic of peak oil. I tried to instill the fear of life without fossil fuel on said friend to no avail. I asked him in curiosity, “How will we fix this?”. With a completely serious face, he answers “Haven’t you heard of electric cars?” I was fucking thrown aback, this is someone I view as being above average in intelligence and he says electric cars?!
The entire concept of where electricity comes from is foreign to him. Like it comes from thin air or solar power. He then goes on to tell me, he has faith in human intelligence. I told him, I have no faith in politicians. End of conversation.
It seems to me, people are out to lunch. Completely fucking numb to reality and the majority couldn’t be happier. I try to impart what little knowledge I have and most of the time, people think I’m lying. “That doesn’t happen here!” or “That can’t be true!” they’ll say. Little do they know, it does happen here and it will continue. I generally cut these types of conversations short, out of sheer anger. “What’s monetize?” my friend will ask, with a stupid fucking confused look on his face. “Fractional reserve lending?”, “Mortgage securitization?”, or “Government Guarantee’s?. Money is power and the vase majority could care less. I find it pathetic.
Moving on to the markets, we are in a scary spot. We are nearing the end of this rising (bearish) wedge.(Post here and Chart here) I believe the stock market is about ready to snap back to reality in a big way. Complacency is the norm and once again the pigs will be led to slaughter. If we moved about 1,350 on the SPX, I would have to reconsider my current view. Watching many short and long plays, but waiting for entry points.