It was U.S. Supreme Court Justice Potter Stewart’s candor which famously described his test in an obscenity trial (“…I know it when I see it,”) when arguments were posed as to why something did, or did not, meet the threshold exceeding the Roth test. Today, the obscenity as to just how adulterated the very fabric of the financial markets have become was ripped clean and laid bare for all to see this past week.
The markets were sent screaming first down, then up, by nothing more than some economic two-bit fantasy both during, and after, the latest ECB’s monetary dictates. These perversions are so visibly adulterating they can no longer be denied by anyone with a modicum of business, or common sense. They are both fiscally and economically disgusting perversions. Period.
As shameful as this has become, what’s just as disgraceful is the cohort of so-called “smart people” arguing why not only is all this trash good, but also, giving detailed explanations of economic theories, equations, formulas, extrapolations, causation, blah, blah, blah as to explain the nuances of it all. I have just one statement for the so-called “smart crowd.” Please stop it. You are now not only embarrassing yourselves ever the more (if it were even possible at this stage) You are now annoying everyone with any decency of what free markets are supposed to represent. You’ve gone past the once laughable stage to the outright vulgar. So please – spare us.
Today’s Ph.D’s within the Ivory Towers of academia, along with their minions throughout Wall Street, have shown they are nothing more than a gaggle of fantasy enablers and promoters as to perpetuate the delusion that there will be financial ecstasy in the end. Just like there always is for the “whomever” that knocks on the door in all those adult movies. Problem here is: this is the world economy they’re screwing with. Not the entertainment industry.
Today, if you’re trying to run a business of any size just how can one use, or view, the latest move in the markets for possible insights on what to do next? Hint – you can’t. Nothing of it made any sense at all, let alone gave one clues as to whether or not one could properly take meaningful advantage for gains or de-risk accordingly. Want just one example?
Hedged your exposure to volatility via the FX markets? How’d that work out last week? I thought things like that only happened in EM (emerging market) currencies? Well, look no further because the €uro just joined that cast with size and swings that would make an adult star proud.
I have a question for all the “Ph.D” styled economists currently touting their interpretations of why this, and that, or, why that, and not this, will equate into monetary bliss. After all; all I hear, read, or watch is one after another giving their hypothesis and back it up with the implied insinuation others should listen because they’re called “Dr.” more times during an interview than a real doctor is addressed at a hospital. Here’s that question:
What does R²+D/K-(34/8√)X52=? Hint: Absolutely nothing. Just like all the current equations, hypothesis and examples of economic theories spewed across most of the financial media as well as prevalent in Ivy Leagues across the globe. It’s all made up, meaningless, gibberish now shown as the outright alchemy it always was.
Today, it’s all about “the printing press.” (e.g., central bank interventionism) Economy falling off the cliff? Answer: Print. Need to cover over all those troubling data points? Print. Want to keep your place as “player” in the political hierarchy and remain on the “VIP” list? Print. Want to remain in the world spotlight? Print. Want to pick who wins or who loses? Trick question: Print and go deeper into NIRP. (negative interest rates) This way you get them both coming and going. (Sorry, the pun was unavoidable)
However, just when this pornographic display of adulteration into everything financial was thought to be contained on just the “pay per view” terminals. It’s now so endemic it’s reached the mass media as they watch in horror their 401K’s along with their hard-earned savings being exposed to this perversion no matter how far they try to remove themselves from its insidious effects or, even shield their eyes. Today it’s everywhere. And it’s being propagated in ways that would make Larry Flint proud.
It is now being not only acknowledged, but rather, cheered that the “Full Monty” most certainly will include the move into the outright purchasing of corporate bonds. And one thought that was only for the theaters of a “banana republic.” Again, the pun just writes itself. It would be funny if it weren’t so tragic.
I hear from friends, family members, along with others at events that are beginning to show the early stages of outright panic as to what is happening. Many (just like those addicted to porno) constantly now look at their screens whether it be on their phones, terminals et al, more times a day than ever before just to watch their balances go up and down in moves that would make a porn star blush. Why? Absolutely no other reason than a most likely intentional, well manufactured, and placed attention grabbing headline that may, or may not, be proved factual.
Another variation of this outright, blatantly manipulative theater is the latest full-frontal-assault now commonly used by many a central banker that takes to the stage and iterates incoherent remarks resembling “This was not that. Unless it’s this or that. However, be that as it may, it certainly will not be that, unless that is what we need, or not.”
Again, all gibberish as to say nothing more than possibly give the headline reading algorithmic, HFT (high frequency trading) parasites a cue to rip through whatever stop losses deemed “harmful” to the narrative, and clear the sheets of any so-called “true price discovery” that’s somehow discovering the wrong price that the bankers want.
You don’t need to be told what you’re viewing and just how debouched it has now become. It makes it all clear on its very own.
This was once perfectly summarized years ago by Themis Trading™ co-founder Joseph Saluzzi in response to the now routinely used “ambush styled” questioning when demanded he back up his insinuation there was manipulation taking place within the markets. He succinctly replied (I’m paraphrasing) “Proof? All I have to do is look at my screens!”
And there you have it as to explain the “markets” of today. Just like the former Justice once implied: All you need to do is acknowledge what you’re seeing – for what it is. No matter who is arguing differently.
So now the markets are all breathless awaiting the next release in this series of manipulative, market moving, economic dogma to be contemplated, then released, for the markets viewing pleasure (or horror) via this weeks FOMC meeting. All I’ll say is this.
For the sake of civility, refinement and taste – I’ll end here.
© 2016 Mark St.Cyr