US FUTURES
DOW- 306
SP500 -31.75
NAS -137.25
All currency's spazzing out
US/YEN decidedly lower at
107.195 - its been hovering at highs for months.
Oil @ $45.58 and continues to give up gains.
Gold/Silver continues its stability
$1287.70/$15.53
Europe futs all down
In other words it is a MESS everywhere.
Total value or price discovery has been masked for many years. You are correct that if one gains one must lose.
In 2006 the options markets were intentionally skewed to not show the massive risk coming in 2008. They were simply pinned on the putt side to not give any signal as to the real problems beneath the surface.
We had moral hazard X1000
The system did not allow consequences for the poor decisions because it controlled the enforcement of all of it.
It just continued to operate and price everything as if it was all just fine.
It was not and when it had the chance to do something to try and fix it….it punted.
We are now only starting to see those consequences.
Hussein's administration masked it so the average person was unaware by creating an infinite amount of credit and threw it EVERYWHERE.
See SPY vs HYG on a long term chart. Massive disconnection from reality so it was essentially growth for the sake of growth no matter the cost.
That 'bill' is now due and payable in the form of massive de-levering….