KW: 

The Federal Reserve has flooded the stock market with oceans of liquidity. Now Deutsche Bank is warning that this is “the end of the free market.” If you look at the tremendous divergence between the real economy (which is probably entering a depression) and the stock market (which has gained about 20% since bottoming out), that assessment seems correct. The Fed has undertaken a massive project of financial repression to keep Wall Street happy while the vast majority world wide struggle. “Traders” and computer alogrythms are now keeping an eye on Fed announcements of liquidity injections to keep markets afloat instead of letting free markets dictate prices meaning, there is no such thing as afree market left, just gamblers who are buying and hoping that there is an even bigger idiot still there to buy when they want to sell out. Ultimately, the Fed could buy stocks themselves, which has been already mooted despite that being inconceivable to its original designers. Japan has been doing it for a long time and and the BoJ already is the biggest owner of bonds and shares in Japan using printed money of no value. It is the junior partner test laboratory. If the Fed could never walk back its extreme support of the last decade, how is it going to reverse today’s even more extreme support? Into this environment our local fund managers are gambling with your KiwiInvestor contributions misnamed as KiwiSaver but its all just a massive gamble so count on becoming really upset sometime in the future as you hear these idiots tell you ‘ah but its for the long term so stay with it and don’t panic’

Yeah right!!

The one glaring example of mass stupidity is the way the U.S. markets keep striving for new hghs while ignoring the collapse in the oil market and the potential banking calamity this will bring to bear on U.S. banks that have funded rapid and expensive expansion of the U.S. shale (fracking) oil industry. Oil’s dramatic price plunge into negative territory is merely one “severed limb” of a dying “banking beast,” says RT’s Max Keiser, warning that longterm fallout from the 2008 financial crash has rendered price signals meaningless. “Intuitively, the casual observer is utterly perplexed when they hear the price of oil has gone negative and they are right to think something is fundamentally wrong with this market,” Keiser said. “Negative oil-futures prices means you’re paying somebody to take your oil.” Derek Brower, US Energy editor at Finacial Times said “This crash is going to destroy so many livelihoods and so many jobs. Whatever anyone thinks about the oil sector — and there many obvious reasons why the world needs to reduce oil use — this is a colossal economic tragedy in the making right now.” And yet no one can take advantage of it because no one has storage capacity to take advantage of the trade. Being paid to buy oil at -US$40 and selling a month later at $20 is the deal of the century but no one can do the deal.

Source: Donald Trump And The Fed Have ‘Ended The Free Market’