Thursday, May 20, 2010

Global Economic Armageddon?

Bloodbath sums it actually quite nicely -
The correction, soon to be crash, is here: the market had a bigger relative open to close move today than it did on May 6. We closed at the day's lows on massive volume, despite definitive central bank intervention, regardless whether it was the SNB, the ECB, or the Fed. The central planners have lost control of the market, and all thanks to the inevitable collapse of hyper capitalist Keynesianism coming out of the formerly most communist country in the world. A day of ironies. And it's not over. Futures are already down another 4 handles. The correction is coming, and it will be a bloodbath. The Fed can not push rates lower. It will print. It is inevitable. It is our destiny.
The Real Effect
Time is running out and the animal spirits are beginning to succumb to the rock solid laws of supply and demand. Keynesians, you can't outrun, outprint, or outspend the market laws and sooner or later they're going to catch up with you and scalp you.

I can see the history books now - "Experts disagree over whether Obama spent too much or not enough to stimulate the economy." It's the DEBT dingbats! If you ignore the debt, like the dread pirate Roberts it will come for your soul.

Anybody notice the plethora of wars starting - Mexico, Afghanistan, Iraq, Pakistan, Korea, Israel, Lebanon, Syria Gaza, Iran. It's like they planned this. Let me see...World War I, World War II, eureka!

Tomorrow should be a very revealing day, my guess is that it will be the reckoning day.

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