FedMed proved dead awhile ago with the whole Bulls team looking dead on the field, until Team Trump, the owner’s club, joined Coach Powell. Then Powell’s coaching team upped its game; and, finally, the Wall Street Bulls revived. “Big deal!” the Bears now yell. “Let’s get back to playing ball!”
All the government juices served in the Bullpen may have floated the dead Bulls into another rally. Yay Bulls! But they’re dead, even if they dance like phantoms.
(By the way, this article is long, but it’s not half as long as listening to an actual ball game, and it’s a whole lot more important, so hang in there; or take an intermission halfway through, because there is a lot from a short time span to cover in order to fully lay out how bad this looks for the Bulls at a time when people still think they’re making a comeback.)
The Bulls woke up during a frantic locker-room pep talk then went back out to the field and played their hardest. They now anticipate that the worst of their game is over and they are about to make a come-from-behind win. I forecast, however, they are about to get their heads stomped into the Bullpen dust … again.
In fact, that will happen again and again because we are only in the third inning after the Bulls scored almost a 50% comeback, and they look wrung out like it’s game over when we have yet to even see what real carnage the Bears can bring. The Bulls are about to find, as always the case with these World-Series-sized Wall-Street wipeouts, they’re just caught in a trap set by the Bears.
In all their irrational, greedy, drunken exuberance, the Bulls mistook this to be the the final inning for a return home to victory … because the Wall Street Bulls just can’t wait to get back into the money-making game that Coach Powell, who moved onto their team from the Federales ten years ago, pep-talked them into.
The Bulls motto under Powell and former coaches Yellen and Bernanke became “Never fight the Fed.” That has taken them to victory for years, but their streak has ended, and it’s going to end in face-wiping disgrace.
As I’ve said for years right along side their rise, Coach Powell and his gang will not be able to save them when the next recession hits, and we’re there! The Bears are now coming back into the ball field for cleanup.
The Bulls are full of … something.
The Bullheads, as their fans are called, including the talking heads on TV that cheer them on during inning changes, are about to see the biggest defeat in history. Bear Coach Bill Bonner recently pointed out some of the world’s dumbest headlines pumped out by the Bullheads:
Our economy is the greatest it has ever been!
Donald Trump, 20 January, 2020, Team Owner.
Bloomberg Economics sees global growth slowing to 1.5% year on year.
Bloomberg, 9 February, 2020, Co-Owner of the Wall Street Bulls, betting for a slight edge in victory by the end of the 2020 series.
‘There is no systemic risk. No one is even talking about that.’
Goldman Sachs conference call to the team, mid-March, reported by Marc Faber
Oh my gosh, the outrageous volume of completely asinine headlines and comments I could point out from the most popular sportscasters in finance and the Bulls top leaders just a month ago; but I’ll stay with Bonner’s short list as exemplary and move on to his game commentary as one of the few worth listening to:
The real truth?
The initial jobless counts by the Bears against the Bulls at the top of the second inning pitched the biggest strikes against the Bulls in US history.
Bloomberg: ‘US Jobless Claims Soar to Once-Unthinkable Record 6.6 Million’. The figure topped all analyst estimates and compared with a median projection of 3.76 million.
And still the Bulls rallied and then rallied again when the nasty strikes happened again.
This is closer to real Black Swan stuff. This week’s unemployment filings, compared to the last half-century, are considered by frequentist statistics as a 30-sigma event: less likely to happen than if you had to select one atomic particle at random out of every particle in the universe, and then randomly again select that same particle five times in a row.
‘A 30-sigma event should be outrageously unlikely, at universe-scale. But they happen. And when they do, they warn us: the problem is not that the universe didn’t behave correctly. The problem is that we were wrong.’
Bonner was referring to another team known as the Black Swans that has been known in the past to beat the Bulls down just when they thought they were winning. The recent voluntary shutout that almost instantly swept the globe as people stayed at home and sheltered in place to watch the game is something never seen in the history of the WORLD! Yet, the Bonehead Bulls, as they are about to become known, are still betting up! You could not find a more extraordinary example of boneheadness in world history.
And this is supposedly Wall Street’s greatest team. So, after the most prolonged scoring by the Bears (dead-bull bounce as I call it) in Wall Street’s history, we now get to see the Bulls pulverized all over again. Overconfident from years of winning, due only to steroids provided by Powell and, of late, by Team Owner Trump, they actually were in such a stupor they believed the game had turned in their favor even though they were still down by half; yet, the real bad news for the Bulls is just getting started! The Bullheads cheering them on are in their own mind-bending crowd, so let the trouncing begin in earnest as the Bears take the ball game back over.
We watched the tape. The US economy is in freefall. Stock market dip-buyers should be running scared.
But wait…no! Bad news is good news…up is down…dumb is smart. They bid up the Dow more than 400 points.
Go figure. The worst economic news ever received…and the stock market goes up? Have investors completely lost their minds?
And then up and up and up again. The Bullheads wrote loops of commentary to each other about how smart the Bulls were for rallying on the world’s biggest crash, and they restored Bull confidence after one of their greatest inning crashes. The Bulls, the commentators said, were alive and well again! Some that I read said, “It’s now S&P 4,000!” (Ra Ra, Bulls.)
As the brighter Bonner went on to say, it all made some sort of bullheaded sense because the Federal Reserve just went all-in on the grandest bailouts in global history, while the Federal government also made bigger bailouts for the Bulls than it did during the Great Depression era defeat, which happened before the Bull’s ten-year run.
The Braindead Brainard-Fed Bulls took this as certain proof new victory is coming because they have been conditioned to think bailouts can accomplish anything. In my view, the new bailouts are already larger than anything we saw during the Bulls’ Great Recession defeat, but they will be ineffective anyway. Team Trump and the Fed Heads who own and manage the Bulls already got away with bailing out the losers! We’ll see a $4 trillion USA deficit before the year is over.
We saw …
… a massive infrastructure package upgrading the nation’s broadband, road and water systems, Speaker Nancy Pelosi said Wednesday, in the next installment of Congress’ effort to help the country weather the destructive blows inflicted by the coronavirus outbreak.’
That isn’t going to save the Wall Street boys.
Now, the Feds are in charge. The government will soon be spending over half GDP. And they’ll destroy the rest in good time. How? The old-fashioned way…a stark-naked, third-world-ish, sh*thole country, money-printing lollapalooza. We’re all socialists now!
Indeed we are. (At least, as a nation, though not yet all as individuals. I’m still here; you’re still here; we’re not that dumb to think socialism, of all things, will save us from the unbridled corruption we’ve allowed to flourish in capitalism.)
The MMT-ers…the big spenders…the dreamers and schemers…the Hillarys, the Sanders, the big government lovers…all the jackasses in the DC metropolitan area — lobbyists, cronies, policy wonks. They all have their pulses revved up, their mouths slobbering…and their illusions in Full Retard mode.
Yup. They’re anticipating a strategy that’s been called the Big Bull Rush now that the owners have pumped in more bonus money than the players ever dreamed of for this next part of the game, but you can see the owners, when caught in candid photos, don’t look as enthusiastic as they pretend to be.
Cut the Bulls*** and get real!
Let’s look at Wall Street’s strike out with its first batter in the new inning today and the reason for the out because it foretells the story I have said would be coming back into this game now. (And let’s admit it, Wall Street, for all its supposed importance, is just a game venue for bookies now. It stopped being a functioning marketplace long ago.)
First, let’s look at the backstreet bookies who make bank when Wall Street loses. I call them the Hedgehogs, and they are finally back on a winning streak. They’re accomplishing what they’re supposed to, which is making lots of money by betting against Wall Street when it is falling; i.e., they’re actually hedging the fan’s outrageous bets and winning.
Of course, they’ve had the help of the Fed Repos, a government bunch that is not supposed to bet in the Hedgehogs’ game but have been doing so in great numbers lately. After a year of living dangerously in 2019 when the Hedgehogs were the big losers because Wall Street kept insanely rising, now the Hedgehogs’ bets for adverse times are paying off … bigly, as The Donald would say.
The Bulls placed a short squeeze on the bookies known as the Hedgehogs in the previous inning which is what helped the Bulls make their run-up as the big Bull rally caused the many whose bets shorted Wall Street’s game on the way down to experience high pressure on their shorts, forcing them to participate in betting the market up. (Which is one reason shorting the market is a high-risk venture because bull traps can squeeze you out if you don’t have the either the moral of the financial strength to stay with your convictions.)
On that basis, I commented to one reader on my blog that the worst would come later in the week when the short squeezes began to roll off and when we FINALLY started seeing actual score cards from statistics gatherers on how the economy is doing and from corporate quarterly score cards.
The real numbers are coming in now, and they are worse than terrible. They pounded the Bulls down by 445 points today (Wednesday). Trust me, there is a LOT more bad news to come for the Bulls! You would have to be deep in denial not to see it coming from this massive economic shutout that has spanned the entire world!
So, here we go, just from today’s first trickle down of real, bad news:
Home-builder confidence plummets to lowest level since 2012 as coronavirus disrupts construction activity.
The index from the National Association of Home Builders posted its largest monthly decline ever in April…. The National Association of Home Builders’ monthly confidence index fell a staggering 42 points to a reading of 30 in April from 72 the month prior.
Any figure below 50 on this bookie’s odds is considered recessionary.
Who couldn’t see that coming? Players’ agents can’t host opens because we have mandatory sheltering in place. Owners who are selling don’t want a bunch of viral strangers parading through and coughing on everything anyway, since some reports have said the viral antagonist can live for days on surfaces. Buyers don’t want to go through the places of people who, for all they know, carry the plague.
So, of course that arena has shut down almost entirely!
You don’t have to be a guru of this game to have seen that coming! But the Bulls didn’t see it because greed makes them want to get back into the game as quickly as possible so they can return to the glory days of endless Fed-guaranteed bailouts. (And none of them listen to me! I’ve said endlessly that the Fed’s steroids just aren’t going to work this time! The players are overmedicated and breaking down.)
Moving right along …
Empire State manufacturing index plunges to record low in April
Second straight record decline in NY Empire Index as coronavirus-related shutdowns hit the factory sector hard.
The New York Federal Reserve’s Empire State business conditions index plummeted a record 57 points to -78.2.
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