Crash Risk Update

Below is the algorithm we showed back in November 16th (for an explanation of what this graphic is) when we asked if we are at a heightened risk of a crash.  Since that date, the market dynamics look even worse.   I have never seen anything like what has been developing since the April-May 2010 top.  Ever.  That’s really not a surprise.  We continue to grope in a dark cave for a way out thanks to a do-nothing President, a do-nothing Congress and two do-nothing political parties, all of which are too busy blowing endless political rhetoric, collecting lobbyist cash and handing out political favors to corporations and foreign dictators to realize the world is still burning courtesy of their systemic and gross incompetence. 

Each day we go where no financial market has ever gone before.  With Wall Street’s Frankenfinance, each new day of global instability we have market inputs and dynamics that have never been considered or tested or stressed before, let alone have been seen.   So, we don’t know what will trigger an unrecoverable stress or input because we have never seen a market like this.  Each new day is an experiment with the monster which Wall Street has created. 

Thanks to a captured government, we are all test subjects for a grand Orwellian experiment in political corruption and one of its outcomes, Frankenfinance.  As someone who understands complex systems and has designed stable control systems, this is a horrifying mess to witness.  Yet Wall Street remains wildly bullish.