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The Verdict is In 4/7/20


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In the war between the Fed's money printing and the market's money destruction the victor is the Fed. At least this morning. The implications are frightening. 

Dicsucs. 

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3 minutes ago, Jorma said:

It will be interesting to see the infection rate of Japan in coming weeks since they have been operating on how the world is supposed to operate starting in a few weeks as restrictions ease and the rally is based upon that. That is, be careful, everyone take care of themselves. As the Japanese are particularly fastidious about personal hygiene we will get a hint of how well that works.  The lock down now hints that maybe not so good. 

It's all going to be over in a few weeks is the new trade deal.. The non deal trade deal was accepted as fine but I'm not sure a 1% chance of getting sick or dying every time you leave the house or let someone in your house for the next few years is going to be so benign. The chance of death tends to focus  peoples minds about things besides money.

Then there is Mexico. OMG. Horrendous hygiene, little mitigation. If the virus doesn't explode there something weird is going on.

While the official numbers of cases is surely low they show that .00016% of the world has been infected so far.

 

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As an older guy with coronary artery and cardiovascular disease, the thought of going to the supermarket shits me. My accomodation host here in Zagreb has offered to do that for me. Talk about hospitality. Wow! 

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27 minutes ago, DrStool said:

As an older guy with coronary artery disease, the thought of going to the supermarket shits me. My accomodation host here in Zagreb has offered to do that for me. Talk about hospitality. Wow! 

I hate to be just another idiot epidemiologist, but here goes. Wear a mask.  Double layer cotton tee shirt boosted by a paper towel probably better than your design. Yes masks are 2/3's about spreading they say, and here is where my amateur doctor kicks in based upon what i saw on the internet, but here goes. 

Airborne and inhaled, thus exposure directly into the lungs seems to be far  more dangerous because lung cells are particularly vulnerable. As oppose to nose,mouth or throat, where something on hands from objects gets in there.  It's breathing in which is worst or so is being postulated now. By the way, talking not coughing always sprays. If someone is talking they are spraying.  That's why mask are used to begin with. Still, use one for yourself. Why not? 

I am in exactly your boat, age, moderate vascular issues, but blessed with a great immune system, offset by years of smoking.

 

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Meanwhile, looks like China's finally learned its lesson and will hereinafter behave as a responsible citizen of the world, at long last cognizant of the grave risks to which its heretofore reckless behaviour exposed its brethren around the world.

https://allaboutgeneva.com/2020/04/06/china-tourist-sites-packed-as-land-come-from-the-coronavirus-lock

 

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Macro liquidity measures have absolutely gone through the roof, blown the lid off, set off a tsunami, as US government spending skyrockets to the moon and worlds beyond. US bank deposits aren’t just soaring, they are exploding.  These deposits are backed mostly by US Treasury paper, future claims on American taxpayers. These claims for which there’s no reasonable expectation of repayment, other than with severely depreciated dollars. Your stocks may soar, and they may still be worthless.

As the stock market began to rebound, one indicator shows the banks started buying shit like crazy. Like the South Park’s Kyle, the kid who always believed in Mr. Hankey the Christmas Poo, the banks believe in Mr. Powell.

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My only question is:

WHY? Why do they do that, although they know that that much money is not needed. I simply don't understand it. "Cause they are crooks" is not the answer. Ok, they maybe are, but plays no role. I mean don't they simply not get it, don't they understand how the system works?

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I've been thinking a lot about how much is riding on the economy at the moment.  Not Wall Street, but Main Street.  Yada yada no savings lots of debt no prospects nothing to lose.  We armchair warriors are one thing, but we too have lots to lose from a breakdown in social order - not just people parking in front of hydrants, but a real failure of the social contract.  Each of us here with our high speed internet, full slate of vaccinations, 3 squares a day and all that, are 1 percenters ourselves, even though we need to work for a living and have plenty to worry about.

I'm all for picking up bargain priced investments, but a real chew-the-tread-off-a-tire crash is not what anyone truly wants.  Good luck entering an order in a true Mad Max scenario, and good luck trying to spend it.  Etc.  If the powers-that-be are flooding the markets, however futile it may or may not prove to be, I'm hoping for it to succeed.  The alternative is unthinkable.

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26 minutes ago, GregFokker said:

I've been thinking a lot about how much is riding on the economy at the moment.  Not Wall Street, but Main Street.  Yada yada no savings lots of debt no prospects nothing to lose.  We armchair warriors are one thing, but we too have lots to lose from a breakdown in social order - not just people parking in front of hydrants, but a real failure of the social contract.  Each of us here with our high speed internet, full slate of vaccinations, 3 squares a day and all that, are 1 percenters ourselves, even though we need to work for a living and have plenty to worry about.

I'm all for picking up bargain priced investments, but a real chew-the-tread-off-a-tire crash is not what anyone truly wants.  Good luck entering an order in a true Mad Max scenario, and good luck trying to spend it.  Etc.  If the powers-that-be are flooding the markets, however futile it may or may not prove to be, I'm hoping for it to succeed.  The alternative is unthinkable.

That's of course true. It is quite easy to predict what would be the outcome of a breakdown of the "imaginary social contract": People would go after minorities. That's what they always do. Every culture did this in the past and would do it again.

I would only ask for that they let the air gradually out of the market and not go after new all time highs. Blue collar folks don't have stocks. So they can't directly profit from an artificial market upmove. Maybe they profit indirectly from it, cause maybe they find a new job, which they wouldn't get if they market went down. But after all blue collar is more and more left behind with every new - artificially created - bull run. 

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