Mish: "smoke and mirrors hide the ongoing collapse in corporate profits"

Here is the post.  It is long and technical and contains many charts.   You don't have to read them all.  All you have to do is to understand why it is happening and why it cannot be stopped: the global debt Ponzi has entered the collapse stage.  The fake, pump and dump money supply has been distorted beyond any semblance of intelligent economic operations.  Con men have been gaming the completely flawed and purposefully fraudulent fractionally reserved credit system since it was created in 1913 by the Federal Reserve Act.  It was a good long con but no con lasts forever and the charts tell us that this one is very, very long in the Kondratiev tooth.

The vast majority of the money supply is now credit.  Credit was never supposed to be permanent money like the monetary base is.  Credit was designed to be instantiated, live for awhile, and then evaporate back into the ether from whence it came.  But bankers and con men figured out that they could just trick stupid people into living larger and larger portions of their lives on credit.   Want a home?  Get a $400-800k loan!  Want a higher education?  Rack up $80k - $250k more of debt in order to attain it.  Want to get around town?  How does a 30k loan sound for that new car?  Want to build a building?  Get a massive commercial real estate loan.  Build a factory??  Get a loan.  Speculate in stocks?  Just ask for credit, they are willing to give it out at low rates!!  Check you credit score every day folks, it's very important!  Credit, credit, credit, credit CREDIT!!

This is nothing but a trap and when its sharp teeth snap shut around people's lives I cannot tell you how many Marks and Patsies are going to be crying the "Never Saw It Coming" blues.  People who are invested in this scam, who have their whole life savings tied up in it, are going to lose almost everything.  Within 10 years people will no longer view housing as an investment.  They will revert to the harsh mean that housing is really a consumption item and that real estate value can go down for years and years once the credit Ponzi rolls over.