Mark Spitznagel Warns “Fed’s Frankenstein Markets Are Totally An Illusion”
by Tyler Durden
ZeroHedge.com
03/05/2014
“The market is an artificial fabrication,” Universa’s Mark Spitznagel warns in this brief but revealing interview, adding that “to think this can persist is simply naive.” Talking to Maria B on FOX, Spitznagel thinks the market could be cut in half if the Fed stepped away now and points out the fallacy of a belief in any persistent tapering as the Fed will step right back if the market goes down. The gap between the market’s “alternate reality” and actual reality is something that simply cannot persist and explains now is the time to be out, to prepare for when the market reprices (as opposed to suggesting people short the market) which is exactly what traders are not doing – as it would be irrational to think longer-term, “if they don’t make their next week, month, quarter; they won’t be around.” “The reason for this is the Fed – the modern day Victor Frankenstein – who have created this thing that otherwise wouldn’t live”
The Rest…HERE
