I am so mad right now I can barely write in discernible english.
Let’s go over the events that led up to today, crash day.
1. Plunging commodity prices, ignored by our central banks.
2. Zero growth in Europe.
3. Decelerating growth in China.
4. A Federal Reserve who’ve been talking about raising rates during a deflationary attack on markets.
5. Plunging yields, caused by flight to safety.
6. Flattening yield curve.
7. ECB head Draghi is all talk no action.
8. The fucking Nazis balanced their budget for the first time in 40 years, at a time when deflation is the risk.
9. Bond yields are now NEGATIVE in the following countries: Germany, France, Austria, Belgium, The Netherlands, Finland, Switzerland, Sweden, Denmark, Japan.
Retail sales numbers came in weak; but I am not concerned about that. Those numbers are for idle morons. You really need to judge retail on a case by case basis. Without a doubt, the drop in gasoline will be a net positive for good merchants. But crappy stores are just crappy and will never garner enough business. The drop in gasoline has been so sudden, so quick, that consumers haven’t even realized what the hell is going on, and have pocketed the savings. Give it some time, they will spend it all.
Futures are down more than 200. I’d like to tell you we can rally off the lows. But the truth is, we are in a deflationary vortex, at a time when central banks seem to be stuck in a morass of sheer and utter stupidity. The prevailing wisdom seems to be emanating from talking heads who literally want to DESTROY western finance through pre-mature rate hikes.
We need more cocaine. I’ve been saying this for more than 6 months. While most of you laughed at me and poked fun at my suggestion that another round of QE was needed, you will not be laughing after today–after today’s sit inside of the death vehicle heading straight for god damned hell!
Happy trading, fucked face.If you enjoy the content at iBankCoin, please follow us on Twitter