We’re witnessing a macro historical pivot point in the making here lads and ladies.
The money men/power brokers are literally crashing capitalism with no survivors in order to secure their own individual stores of wealth. The best thing for capital markets right now would be a massive plunge, as a market depression will necessarily be followed by a corresponding cyclical recovery. Common sense, fundamental analysis, and TA all indicate markets should go down right now as the emerging harm to the real economy is unprecedented and incalculable.
Whats happening now is capital markets are rising even as the real, hard economy is crashing. Intervention by the Fed is literally derailing the markets off their ‘natural’ course and the consequences could be exponentially more disastrous than a ‘regular’ economic depression/recession.
If the S&P returns to approaching ATH even as unemployment edges towards 30% or more, the contradictions in the system and the inequality of wealth will be truly unsustainable and will result in actual structural collapse exterior to the capital market bust/boom cycle. We could be in a situation where we simultaneously have an ATH market cap and a consumer liquidity crisis. Double digit unemployment accompanied by inflation instead of deflation. Contradictions which will be an economic nuclear bomb.
Think rioting in the streets and coups around the world as the financial elite see their wealth unharmed, with the burden instead passed on to everyone else. Imagine what the subsequent history of the United States would have looked like if FDR’s ‘New Deal’ floated the securities market instead of redistributing wealth into federal infrastructure projects and job growth.
Capitalism as we know it will be destroyed by a small group of individuals who want to die with their own wealth intact. Fuck what might happen 5-10 years down the line as long as they can get out unscathed.
If things continue in the direction set this week, and a major market correction does not occur, things will be pretty dire for more than just SPY put bagholders.
TLDR; JPow and Trump are setting the US up to become the next Zimbabwe so big money can exit unscathed
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.