Memo On Stock Market "Volatility" and the Trap for Trump

Memo On Stock Market "Volatility" and the Trap for Trump

February 6 -- While it is too early to say for sure that we are at the beginning of an historic popping of the stock market bubble, it will eventually occur.  The Plunge Protection Team will be out in full force this week, to try to halt the slide, but ultimately, this bubble will pop.  The top swindlers on Wall Street are well hedged, and often move to short positions to profit from steep drops or crashes -- this is likely the case today.

But the "Masters of the Universe" at the Too Big to Fail banks and the top financial institutions do not have a solution to the problem they have created, the Catch 22 created by the regime of QE money and endless bailouts.  There are now too many "zombie" banks and corporations which can only survive if they have a flow of liquidity.  If that flow is slowed or halted by raising interest rates, to prevent a shift to hyperinflation, a much bigger crash will occur, as the total amount of debt is unsustainable, without the funny money being pumped in by the Federal Reserve and other central banks -- which threatens a hyperinflationary crash, thus defining the Catch 22!

Read More