Financial System Broken - Markets 'Utterly Unhinged'
-Mike "Mish" Shedlock
...But let's not be too gloomy here.
Other than overleverage, bad debts, sinking home prices, no jobs, shrinking wages, cash strapped US consumers, rising oil prices, a sinking US dollar, $500 trillion in derivatives not marked to market, rampant overcapacity, underfunded pension plans, looming boomer retirements, no funding for Medicaid, no funding for Medicare, and no Social Security trust fund, everything is just fine.
And even though the Fed, central bankers in general, and governments combined to create this problem, the irony is nearly everyone is begging for them to fix the problem by encouraging still more speculation in housing, commercial real estate, and the markets.
Sorry folks, it's the end of the line and payback time for the world's most reckless financial experiment in history. The deflation genie can't be put back in the bottle until leverage everywhere is unwound.
Like an exponential function, we are slowly creeping up the curve. How soon before we go parabolic into uncharted disarray in markets? Who knows, but exponential functions are tricky beasts, whether you are talking about the stability of a nuclear reactor, which is governed by exponential characteristics, or the stability of a system dependent upon massive leverage and when you turn that corner, it is too late to turn back.
Ladies and gentlemen, we are about to enter one of the most exciting periods of history in the last 100 years. Great fortunes will be made and lost. Massive changes will flood over governments and societies. New ways of living and thriving will spring up, nourished in the ashes and debris of the dying system.
The quick, the bright, the lucky - they will find the collapse of the decaying order to be a time for action and bold moves.
The dull, the fearful, the unlucky - they may be cursed by a collapse of "the way things work" so complete that their minds will never adjust and they will live out their days a worker bee on some corporate plantation, paying off a credit card debt or household slave to a wealthy family who bought up mortgage notes.
We are all about to get FutureJacked. I hope you are ready to move fast, live brave and make history.