Ponzi World (Over 3 Billion NOT Served)

The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.

Tuesday, November 4, 2014

Another Domino Falls

Risk in credit markets has been diverging from stocks since the start of this year

Credit Spreads

We've never seen this before...(it's probably nothing)

The High Yield bond ETF as a ratio of long-term Treasury prices.
Correlation w/S&P 500, lower pane.

Everyone's going to act so surprised when this all collapses like a cheap tent.

h/t MW: The Only Divergence that Matters, Nov. 3, 2014