Menu Close
Posted in Liquidity Trader

Animal Spirits are Waning and Money is Disappearing

This is a syndicated repost courtesy of Liquidity Trader. To view original, click here. Reposted with permission.

In past reports I’ve covered the fact that the proximate cause of the US Treasury’s massive intervention in the Treasury market is the crash in Treasury bond and not prices. Dealers are underwater. They’re drowning. And surprise, surprise, they have engaged in more stupid behavior of the kind that causes systemic crashes.

Why are we surprised? These same Wall Street Mafiosi are behind every financial crash, and they are never held responsible. Quite the contrary, the Fed bails them out and rewards them for their wild gambling with other people’s money, and for their disgusting, criminal malfeasance.

The financial system with the Fed as corrupt cop on the beat, stinks to high hell, but it is what it is. We just have to understand their corrupt rules and play by them in order to preserve and grow our capital. Understanding that game meant that we’ve had to be bullish most of the time for the past dozen years.


The full report is reserved for subscribers. 

Click here to download the complete report.

Not a subscriber? Read on. There’s more for you too on the next page.

Meanwhile, hard working savers got robbed of the interest income they had expected to live on. Did the policy makers ever stop to think that if this income had been available for risk averse savers to spend on real goods and services, the economy would have done better, and risks would not have built to the point where they repeatedly threatened to destroy the system?

Ditto for insurers and pension funds. Had they been able to grow their assets through adequate, prudent income investments, rather than reaching for more risk, wouldn’t that have made the system less risky and fragile?

The thing about con games, is that they can’t last forever. The rot eventually infects the system to the point that it collapses.

We’re getting closer to that point. We see in a number of indicators signs that animal spirits are waning. The game has become too unstable. Players are leaving. They’re taking their chips of the table. High rolling whales are going bust. The casinos are pulling back credit lines, and demanding repayment. More and more players are being forced to pay up.

In short, money is disappearing almost as fast as the Fed can create it. We’re fast approaching a tipping point.  This report illustrates.

The full report is reserved for subscribers. 

Click here to download the complete report.

Not a subscriber yet?

Get this report and access to all past and future reports risk free for 90 days! 

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Related Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.