"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Friday, April 19, 2013

The Collapse Of Index Price Representing Fundamental Activity

The world's hubris continues to march on.  Mathematics continue to skew the true representation of the metrics being measured (ie U/E down as Participation Rate drops) and this is captured beautifully in the chart below.  Articles being pumped out by sites seeking revenue through click-bait are driving this internet reading, algo-driven, and fragmented market (we are now in the 2nd Degree of Fragmentation).  Getting a read on real price is a pain in the ass and just like in 2007/2008 once someone figures out the real value (which is closer to a S&P Index value of 1450) prices will collapse faster than the MBS value Lehman had on their B/S.  

Good luck human.

(h/t @Not_Jim_Cramer)