An All-Time Low

The more I think about the events of the last two weeks, the more I think that we’re simply at an all-time low.  The meltdown in Europe, the quick 8% savaging of US stocks after a fairy tale Q1, the utter failure of Facebook’s IPO to do a single fucking thing for the markets or the retail investing public…it’s all just garbage.

This Dimon guy – the last banker that anyone had any confidence in whatsoever goes and lets his firm blow up.  And lest you’re unaware, the New Math for bank losses is pretty brutal: JPMorgan copped to a potential $4 billion loss and we ripped $40 billion off its market cap in the last week.  That’s 10X, kids.

In an episode last year, an investment banker from Citigroup was introduced to Jamie Dimon at a party and Jamie mockingly said to him “Why don’t you get a job at a real bank?”  And I loved that.  It screamed confidence and competence (and arrogant asshole).  Competence used to be such a big part of this culture.  Swagger used to be a by-product of success and getting shit done and taking care of business.  Now we have “swagger coaches” hired by little popstar fairies like Justin Bieber, nobody earns it anymore.

And in the place of competence and confidence and swagger is failure.  Everything now is about failure.  Stepping Down is the new Getting Hired.  An energy executive running his own hedge fund and drilling programs alongside the activities of his company.  A tech executive with lies on his resume gets the CEO gig at Yahoo, lays off ten percent of the company before being unmasked.  Boards are clueless, shareholders are trampled under foot.  The culture of our corporations is shot through with the type of mild retardation that only Ivy Leaguers possess.  Smidiots – smart people doing idiotic things with other smidiots’ money in broad daylight.

My favorite album title of the Spring comes from the Minnesota surf-rock band Howler.  Yes I recognize the absurdity of a surf-rock band from Minnesota but stay focused here.  The album’s called ‘America Give Up‘.  How perfect is that?  I can’t tell if they mean it as a command, like “America, give up already,” or as a noun for the national mood – the America give-up.

Tyler’s talking about this moment as a tear in the fabric of the illusion.  This has been a great two weeks for Zero Hedge as 2 out of 3 country stock markets are now in bear territory (ask Meb).  The euro bank runs they’ve been predicting and salivating for over the last three years are now underway, it feels like the ground is shifting beneath our feet and that things are speeding up.  China is crashing, Russia is crashing, Western Europe is disintegrating…

But Tyler’s not gloating here:

Some look at today’s FaceBook IPO flop, the ongoing market rout, and the situation in Europe with disenchantment and disappointment. We, on the other hand, view it with hope: because more than anything, the events of the past few days show that the truth is getting out – the truth that capital markets simply can not exist under the authoritarian rule of central planners, the truth that the stock market is a casino in which the best one can hope for a quick flip, and finally the truth that our entire socio-economic regime, whose existence has been predicated by borrowing from the uncreated wealth of the future, and where accumulated debt could be wiped out at the flip of a switch if things go wrong in the process obliterating the welfare of billions (of less than 1%ers), is one big lie.

Stocks are oversold.  They will bounce for a week or so, they are overdue.  The technicians will read far too much into the rally, the fundamental guys will scream about how cheap things have gotten.

It’s not going well.  You can forget the latest economic datapoint released from the government or the price of the Dow Jones average; we really are at an all-time low.

Read Also:

The Truth Gets Out Eventually (Zero Hedge)

2 Out of 3 Countries are in a Bear Market (World Beta)

 

 

 

 

Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.

What's been said:

Discussions found on the web
  1. houses for sale in bellflower ca commented on Sep 16

    houses for sale in bellflower ca

    […]Here is an excellent Weblog You might Come across Fascinating that we Encourage You[…]

  2. سكس مترجم commented on Sep 16

    سكس مترجم

    […]please stop by the web sites we comply with, which includes this one, because it represents our picks from the web[…]

  3. Jimmy Choo commented on Sep 17

    Jimmy Choo

    […]Every after inside a when we pick out blogs that we study. Listed beneath would be the most up-to-date websites that we decide on […]

  4. Givenchy commented on Sep 18

    Givenchy

    […]check beneath, are some entirely unrelated web-sites to ours, however, they may be most trustworthy sources that we use[…]

  5. خرید وی پی ان commented on Sep 19

    vpn ایفون

    Hey there! I not too long ago noticed your website and I definitely enjoy it. I love to talk about omega xl occasionally. Good to be about, many thanks a whole lot!

  6. خرید اکانت وی پی ان commented on Sep 20

    vpn ایفون

    Hey there! I just lately saw your site and I certainly enjoy it. I enjoy to converse about omega xl from time to time. Excellent to be close to, thanks a lot!

  7. Wordpress theme customisation commented on Sep 20

    WordPress theme customisation

    […]just beneath, are many entirely not connected sites to ours, having said that, they are certainly worth going over[…]

  8. وی پی ان پر سرعت commented on Sep 20

    vpn ایفون

    It’s likely to be end of mine working day, nonetheless before complete I am studying this wonderful publish to boost my knowledge.

  9. اکانت vpn commented on Sep 21

    vpn ایفون

    right here are some links to net internet pages that we website link to because we truly feel they’re genuinely worth checking out

  10. خرید vpn برای کامپیوتر commented on Sep 22

    vpn ایفون

    We definitely adore your site and discover practically all of your post’s to be what exactly I’m searching for. Does one particular provide guest writers to publish content material for you? I would not head producing a submit or elaborating on a whole…

  11. اکانت vpn commented on Sep 23

    vpn ایفون

    Wonderful site! Is your theme personalized produced or did you obtain it from somewhere? A design like yours with a few straightforward adjustements would really make my weblog stand out. Make sure you let me know exactly where you acquired your layout…

  12. Burberry parfum commented on Sep 23

    Burberry parfum

    […]Sites of interest we’ve a link to[…]

Read this next.