The Coming Credibility Hammer…”These markets have demonstrated to be nothing more than HFT fueled short covering, stop hunting, panic rallies out of nowhere to make up for the preceding sell off the day before.”
by Mark St.Cyr
ZeroHedge.com
07/30/2015
There are a lot of credibility “nails” that will either be hammered home or pulled out all together in the coming days, weeks, and months. They run the gambit on this financial house of cards that has been built over the years and currently, there are just too many shingles that have come loose along with siding, cracked foundations, and a host of others. Where credibility not only contends with the structure itself, but also with the so-called “smart crowd” of analysts, advisers, fund managers, media outlets and more. The coming storm now appears credible, where it’s made even the staunchest revelers of the status quo appear nervous. Forget about what may, or may not, be showing signs of de-lamination; for things may be about to come completely unglued as well as unhinged.
The Federal Reserve’s Open Market Committee will end a two-day meeting today. What they say as well as don’t say will be parsed over with bated breath and heated keyboards as soon as the it ends with no presser as to parse or mince the details any further. All that one will have is what they currently believe the meaning of the Fed’s version of “is” is. That or Jon Hinsenrath’s now famous near instantaneous rebuttal to what they “really mean” if the market goes in a direction other than the Fed intended.
The Fed lost its credibility a long time ago and long time readers are well versed. Anyone with real business acumen or understanding of free market capitalism with all it entails knows the Fed has remained far too accommodating, and for far too long where much higher consequences are going to be paid in the future, so there’s no reason to drone on. The only issue today is when those prices are to be paid – not if.
Whether or not they should have intervened at all during the original crisis is still a debatable question with valid arguments on both sides. Remaining and expanding that intervention some 7 years is not. The only credible question that now remains is: Just how much of a price will be paid, and can it be afforded? When that bill comes due is still an unknown. Yet rest assured – it will come.
However, the credibility of the media at large along with its subsets such as “the financial media” are also going to face what I feel is an enormous credibility hammer. To give you an illustration of what I’m trying to express I ask you dear reader to answer the following: Who has more credibility? A person, media outlet, investment firm et al that has tried to hammer the point that these markets were not to be trusted as they continued a near vertical assent up nearly 300% from the low? Or, one that has continually scorned the first and told you to grab this party with both hands and enjoy the ride – as the wheels now begin falling off the bandwagon? All while you finally notice even the band itself (i.e., the real economy) was never on the wagon to begin with. Just you, your 401K fund, and what is now coming into view – a cliff at the end of the road/horizon.
This is the situation I believe many are going to find themselves in. All one needs for proof is to open their eyes and look out on that horizon. It’s all they’re coming into clearer view on a near daily basis. Where once the horizon shielded it over its edge is no longer the case. The only way not to see it today – is to look away. Yet, ignoring it doesn’t mean it’s not so: which is precisely what both Wall Street along with its revelers want you to not only think – but believe. This is a perilous diversion with grave consequences in my opinion.
I saw no greater example of this than just Tuesday of this week I was watching a segment on Bloomberg Surveillance™ when I had what is now commonplace for me, that “Wait…what?” moment.
The Rest…HERE
