Donald “The Red Queen” Trump now reportedly hates his economic adviser and Fed chair pick (((Gary Cohn))), “according to two people with close ties to the White House.” The premise for this World Wide Wrestling Federation-esque drama is that Cohn criticized Trump’s balanced statement after the Charlottesville staged deception. Cohn wants a crackdown on fictitious “neo-Nazis.”
Dual U.S.-Israeli citizen, former Israel central banker and current U.S. Federal Reserve Vice Chair Sidney Fischer also announced his sudden departure, scheduled for Oct. 13. (((Janet Yellen))) is scheduled to be replaced in January, so The Red Queen will have to offer a new name right into crash season.
Yesterday, chief chrome dome of vampire squidom and Goldman Sachs CEO (((Lloyd Blankfein))) said the markets are too bubbly.
“Things have been going up for too long,” Blankfein proclaimed. “When yields on corporate bonds are lower than dividends on stocks, that unnerves me.”
He joins a chorus of money-guru mucky mucks, including Warren Buffet, who are echoing the same sentiment. Last week, Bank of America Merrill Lynch said the Bitcoin bubble is no outlier and that bubbles are everywhere, including London property.
“Seeing signs of bubbles in more and more parts of the capital market,” warns Deutsche Bank’s John Cryan.
(((Jacob Rothschild))) revealed in his fund’s most recent financial report that US assets were greatly reduced.
In July JP Morgan’s CEO (((Jamie Dimon))) warned that unwinding QE could “catch investors by surprise.”
No doubt these “geniuses” have also noticed that beyond extremely stretched valuations, algos (aka quants) programmed like reptile brains conduct 70% of the trading on Wall Street. It’s my belief that they have the same reptilian brain auto-pilots programmed in. One wonders just how many of these tripwire algos Goldman Sachs designed themselves.
One of the gambler’s annotated bubbles is Bitcoin, which has scam and Ponzi written all over it. Chinese authorities have moved against this tulip first by banning initial coin offerings (ICO). The “market” on this mania came right back after a short term drubbing, so Friday China closed down local exchanges.
Back in June so as to create some plausible denial for a market rout, the mucky mucks at the privately held Federal Reserve Bank went through the motions of warning human market participants. A key tenet of Luciferian types is the “foreshadowing.” That way they can wash their hands of the carnage.
At the time San Francisco Fed President John Williams said the stock market “seems to be running very much on fumes” and that he was “somewhat concerned about the complacency in the market.”
Now departing Fed Vice-Chair Stanley Fischer was more direct, suggesting that there had been a “notable uptick” in risk appetite that propelled valuation ratios to very elevated levels.
Finally, Fed Chairwoman Janet “Yellen Wolf” offered her standard wishy-washy take: “Asset valuations, by some measures, look high, but there’s no certainty about that.”
That didn’t cool the animal spirits, therefore the privately owned Federal Reserve has been hinting that it will being reducing its balance sheet starting in September. Now we have yet another “Yellen wolf” moment. Perhaps the potential fallout explains why Stanley Fischer has to beat it to the exit door and Lloyd Blankfein, et al has covered his ass. The U.S. dollar has been very weak and gold is quite strong, yet the financial conditions index remains extremely frothy. These moves are long, long overdue.
Holders of gold and silver should now be aware that speculators have made extremely lopsided bullish bets. In fact in my experience following the CME commitment of traders (COT) data I have never seen so few managed money shorts. Again many of these so called managers are trading quants and not dedicated or strong gold holders. There are also large spec bets against the Dollar. During debt liquidation cycles there is a perverse shortage and demand (more accurately a squeeze) for Dollars.
Insurance companies will need to reduce holdings to pay claims from the disasters. Most flooding losses are picked up by the Gubnut, which will need to borrow.