Wrecked “Markets” Flaying Like a Chicken Outfit with it’s Head Cut Off

Editor note:  My old X account was hacked and is now being used to send out pornographic images. Not only has X prevented me from recovering it (password was changed), but won’t even remove it. Accordingly I have a new X account that I am trying to rebuild. I am active there right now. It too is obviously throttled but is still up and my more loyal readers can follow me directly at @Winterwatch51


Following the margin call wipe out in Korea the authorities there have conducted “market” interventions. More than 1.2 million leveraged retail trading accounts in South Korea triggered margin calls with an estimated 320,000–360,000 accounts fully liquidated, per Goldman Sachs. This means around 3.4% of the adult ⁠population in South Korea has received margin calls.

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Rallies in bear markets are not unusual in themselves but this one has a real fantasist quality to it. This in turned has set off a rally in US and other “markets”.

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This morning before the open the U.S. artificial bounce continues. However the cracks are apparent in “market” favorites like Apple. It seems Apple is no longer growing much while supporting an inflated valuation. This is another favorite of the momo crowd.

This is the AI revolution in a nutshell: – Only ~10% of the committed data center build outs are actually underway – Circular financing is being used to manufacture demand – Chinese models are cheaper with similar performance – Data centers are already waiting years for grid access – Gas turbine order books are beyond production capacity through 2030 – New transmission lines take ~7 years to build

Debt needs to be serviced now, and only Ponzi credit is on hand.

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Iran blasted U.S bases in Jordan over the last few days. I am convinced Iran is trying to bait the U.S. into ground operations during the scorching months. ChatGPT tells me heat and humidity runs high in the region through to the end of September.

The US military is already stretched thin, rationing interceptors and stand off weaponry, and facing a defense industrial base paralyzed by supply chain issues. An invasion now would fulfil Iran’s geo-political and military goals, spike oil to unimageable heights, crash the U.S economy, and guarantee immediate Big Brain Trump regime political suicide.

Energy indicators on the reality versus fantasist front.

Fantasist front: Images just released of how the US rebuilt its hardened aircraft hangars in Jordan’s al-Muwaffaq Salti air base just 6 days ago and Iran already destroyed them again, suggesting they have real-time satellite surveillance now in their OODA loop.

Are “markets” are pricing in the conflict being concluded in Iran’s favor as a fait accompli, foregone conclusion? I would offer that this is extremely unlikely. This shit is hard to wrap one’s head around, but pull up a seat.

Cushing oil inventories are now in uncharted territory 18.599M barrels. SPR drawdowns end today. Between 12 and 20 million barrels per day remain disrupted with no clear end in sight. Paper ‘market” manipulation doesn’t create molecules.

The amounts of recent Treasury debt issuances is beyond shocking. Yields are being held in check through yet more “market” intervention and backdoor Weimar trickery and monetization.

To my sensibilities it looks like it is the US Treasury that is being margin called.

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