Have the markets REALLY calmed down ?
After last weeks meteoric 900 instant rally, which has the plunge protection teams fingerprints all over it, we start the week with much less volatility and investors with memory retention of around 3 days.
Raising rates issue has gone nowhere and debt is an issue which will get worse and worse, together with horrific deficits.
There is no exit plan, there can be, no exit plan. The creators of this mess are pathologically incapable of admitting any errors so we must not expect central banks to do anything constructive, outside lining their own pockets with trillions.
So crazy have these complex markets become, take 5 minutes to consider this :
You can sell ( short ) an instrument called the VIX , which is basically a volatility indicator. So, you can sell a conceptual thing, which you do not currently own, with money you do not have , which is even leveraged, given ( lent ) to you by a broker who does not own the money either!
When things get this silly, we know how it all plays out..
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