Wall Street Ponzi Scheme’s Biggest Challenge


Although the Masters of the Universe have shown themselves to be adept at rotating money from one sector to the next in order to keep Wall Street’s Ponzi scheme going…forever, they will need to commit huge new sums to the FAANG stocks to maintain the bull market’s credibility. Shares of world-beaters such as Amazon, Apple, Google and Netflix have languished for weeks, putting a drag on the Dow Industrials that eventually will turn lethal to the aging bull if FAANG shares stop achieving new record highs with awe-inspiring regularity. My guess is that Facebook and GOOGL are about to lead the charge, since their ability to monetize eyeballs will always be reckoned by investors as an easier path to profits than selling actual things, as Amazon, Tesla and Microsoft must. In any case, hoisting some of the biggest-cap stocks in the world even an inch at a time will require larger and larger infusions of cash.  Succeeding at this game will become far more difficult if the Fed continues to tighten, even if they are just bluffing. If traders haven’t factored this into their thinking yet, it is time they did so.

  • gary leibowitz December 9, 2017, 3:08 pm

    I see a strong possibility of a trade. I think your 2690 mark might be hit in next 5 to 7 days. Keep an eye out for this and subsequent drop all happening before holidays start.


    What’s this world coming to, Gary, when you and I start agreeing on bull market targets?

  • John Jay December 9, 2017, 1:15 pm

    Depends on who replaces “Big Al’!
    Best rationale for the “All Males are Pigs” Crusade is that is actually “Plan B” to oust Trump since the McCarthy like “Russians Control Trump” narrative has backfired big time.
    Just have a bunch of high profile Politicians and Celebrities crucified, and then produce more “Floozies Trump Harassed” 30 years ago, and argue that Trump should , of course, “Resign” too.
    Of course!

  • John Jay December 8, 2017, 9:32 am

    The lunacy in the financial world is one thing, but the chaos in DC is really disturbing, and a far greater threat to us all.
    Senators and Congressmen being forced out for behavior that was always accepted in the past! Has DC suddenly Got Religion or is something else going on?
    The FBI “Exposed” for the Political Police Praetorians that they have always been?
    Google, Facebook, MSFT, covert intel gathering from their inception, which gives them immunity from the Sherman Anti-Trust Act?
    US playing Thermo Nuclear Roulette with Russia, NK, and China?
    What the hell is going on back there?

    The World Wonders!


    Any outbreak of mass hysteria that ends Al Franken’s political career can’t be all bad, John. RA

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