"The amount of liquidity pumped into the markets and the economy in the last year dwarfs anything we've seen in history...the amount money pumped into markets is simply unfathomable...In the US alone 55% of GDP, $12.3 trillion in just 13 months. There is no precedence for this. None."To full grasp the enormity of the cumulative size of the most recent intervention amounts...for $12.3 trillion the total actually comes to $37,500 for every man, woman and child in the US (population 328M). That's how much was just injected into the economy and financial markets over the past 13 months."
"The middle class has finally surrendered the last of its rational risk-aversion and gone all-in on bets in the Fed's rigged casino."Record inflows into equities is evidence that the middle class has been suckered into the Fed's rigged casino. Why lose money every day in savings and money market accounts when newbie punters are raking in $250,000 a month playing options on Gamestop?"
"Markets and the economy will soon have to contend with a new concept and that is: Relative tightening. No, not in the form of Fed tapering or rate increases. Those won't happen no matter what the data says, central banks have already made that clear. To even discuss it would cause havoc in financial markets."Relative tightening is going to occur no matter what happens as the amount of liquidity having been injected won't be repeated. The fiscal and political appetites won't permit it. And while we may still see an infrastructure bill in some form this year everything that happens will be incrementally less...the loosest financial conditions ever won't remain so, and that markets soaked with peak liquidity will have to contend with relative tightening at a point where expectations, valuations, margin debt and optimism have never been higher leaving room for major reversion risk."This entire market is so vertically bloated with excess across all asset classes and filled with speculative frenzy, I see it as incredibly dangerous, and this relentless drift higher in recent weeks and artificially produced calm could make way to something very sinister at some point. Nobody will ring a bell at a top and I certainly will not aim to make such a folly attempt, but...something is brewing...It's been my contention that they've totally overdone it on the intervention front and as a result we're staring at the largest asset bubble ever."