Dear CNBC,
Please don't take these words as insulting. They are not meant that way.  I think you are simply doing your part to prop up the foundation stones. The problem is markets can't be managed and moved by words as they have in the past. This generation is a lot more cynical and have a much shorter attention span. They use multiple sources (not necessarily sound sources). If the politicians are relying on what I like to call Hopium then they don't understand this generation any more than Economics. The problem will only get worse as time passes.

This generation won't read anything more than a page and generally skip to the bottom of the page to get the final analysis and make their decisions from there. For example; the Pro's will wait for Jackson Hole and parse every word but this new generation will move swiftly on a sentence of 140 characters. Those 140 characters will move a generation. They like sound bites and will repeat them in lieu of reasoned arguments. It's a generation that won't invent much other than toys and get rich quick schemes. They don't have big ideas and they are complete narcissists. They want everything now and they expect information to be free. They expect everything digital available immediately and have no hang ups about stealing it either. 

They are moved by quick blasts of information. They are connected as never before by tweeting, texting and social networks. Twitter has become a super organism that swiftly changes opinion and mood at a rapid pace. Here is the super organism based fund at work and it's going to put the Elliot Wavers out to pasture:

A super organism can be infected but until the market makers figure this out it will be a reasonably honest expression of what the world is thinking. When the World decides the Dollar is junk it won't matter what anyone trading a trillion dollars thinks.

10% is the tipping point for an idea if those 10% are really committed to the idea. Once it hits 10% then those committed 10% will start to take over until the next idea takes root.
What I am also suggesting here is this generation could infect older generations to the point Hopium will not work.

BTW I am not a Gold Bug in the sense that I think a Gold Standard is the answer to the worlds ills. I am a gold bug in the sense that I see it as portable insurance against those who would continue to devalue my earned labor in paper money. I may not be part of the new generation but I understand their mentality. They will be passive until they see an opportunity to take something for nothing just like the recent riots in the UK. They will be passive until the 10% takes an idea and infects the rest with that idea. Consider this CNBC ... currently the Kitco price feed is used by a little over 3000 sites. Just imagine what will happen when it is is 30,000 sites all singing the same mantra.


Swampfox said...

Well written Louis. Love the last paragraph.



Louis Cypher said...

Thx Mr. Fox