Cause it sure add hell ain't capitalism that has done this. I'll have much more on that in time if they fail to do the right thing.
Lion, if you want the public to get it, all your ZH brethren have to do is broaden this analysis to look at value capture amongst top financial players versus Top CEOs versus MEDIAN REAL INCOME... over time. The impact of financialization will be impossible to miss. And those who've rigged the system will be squarely in view of everyone.
How much had David Tepper deployed into the real economy from his $3B in gains last year? How much value to society did he really create as he made that (I mean changes in the underlying companies that actually injected new capital for the companies to do what they otherwise could not, or where he in an investor capacity directed then toward highly profitable oportunities that they otherwise would not?).
Asymmetric knowledge. Concentrates into the hands of those who use it simply to scalp/skim more financial assets and from those who do deploy into the real economy with higher marginal propensity to consume.
Swype sucks sometimes.
The systematic scalping and abuse of aubergine knowledge of positions and leverage has yet another note subtle consequence. It further concentrates income/wealth into the Hands of those with the lowest marginal propensity to consume and takes vroom those with higher MPC. Wall Street's glorified skimming person and protection rackets do real damage to the real economy.
If the PRISM was focused on Mahaney and the other scamalysts, it would be eye opening. They are completely complicit in the fleecing of retail investors IMHO. The lack of integrity in the market is exceeded only by the lack of integrity and intellectual honesty in the analyst community. Talk about an overpaid crew that simply engages in storytelling to try to explain where the option manipulation algos already moved the stock price rather than truly add value. Same Schit Different Distributor. I'm most disappointed in ex McK guys like Kirjner because they know better. But, everyone on Wall Street has become willing to sacrifice honesty and integrity to make a bigger bonus this quarter. The humans all capitulated to the machines and might have let the market die in the process. I pray they find the courage to do the right thing and wrest control back (eventually they'll all understand that if they do not exercise human judgement, there's no reason to pay humans absurdly high compensation to all tell the same stories about what the machines have done).
It actually isn't that hard. Use old school fundamentals to realize the distortions that the option algos have created. Don't let the machines unload any float scam via options. Sell all of them straight through everything, raise cash and selectively reinvest in fundamentally solid companies with real balance sheets.
Noise boys / institutional shorts always run a snap back vol selling "rally" while covering to screw retail shorts. They were very much a driver in the 300 to 480 run and will try to make sure no one else enjoys the feast.
Cash, my education of pension funds is in the context of productive domestic investment. All that I do is trying to rebuild our domestic innovative and productive capacity. In terms of the kids, I educate them about the importance of science, technology and entrepreneurship so that they might choose that path rather than writing algos to engage in glorified theft.
There's still a small chance to restore balance without collapse. I really pray they do the right thing. Else we all lose.
But, I'd still rather have the fix come from inside because I believe that functional capital markets are essential to the health of the real economy, but no one would play if they really understood how widespread and dominant the glorified theft has become.
Trust me. What I am doing well have far more profound consequences. The only question is which financial sector institutions end up holding the liability and get the privilege of explaining their actions to fiduciaries.
Haven't had a chance to check put and call volumes yet, but expect the traditional playbook of institutional short snap back rally to screw retail shorts.
But they are definitely still trying it. Lots of OOM puts being sold again today. Huge number transacted over the past few weeks. Nothing like pushing the limits until it all does break.
Uh oh. AMZN's in trouble. And that LOC is child's play compared to what would be necessary in a demand shock. The deferred compensation ponzi requires an increasing stock price. What to do?