Some headlines and thoughts which show where we are currently at:
“US Industrial Production Plunges By Most In Over 100 Years”- Zerohedge
Don’t forget it was plunging for 2 years prior to any virus- this just greased the slide!
“Will Get Worse”-Virus Pushes Germany Into Recession” -Zerohedge
Yes- blame it all on the virus. Forget that Germany was having MAJOR problems economically long before COVID 19 was ever heard of.
“US Retail Sales Crash By Most Ever In April, Cars and Clothing Clobbered” Zerohedge
What a surprise! If people don’t go anywhere and have no income they stop buying stuff!
“Companies Call The Market Top With Most Stock Sales In Eight Years” – Zerohedge
Actually, even though I believe this is an ominous sign because who knows better what the future appears to hold than those who are running the companies? Certainly, those folks running for the hills would normally be a LARGE sign that trouble is ahead. However, as long as the central banks are buying virtually everything and propping stocks, bonds and real estate anything could happen. Don’t you think near 50% unemployment (my article yesterday BLS, Wolf Street), a closed down economy and no end in sight wouldn’t have collapsed the “markets” already? I believe the central banks will take this as far as it can and it will ultimately collapse under its own weight- but who knows when? Any traditional metrics can be tossed aside.
As usual, the answer is more debt to solve the problem of too much debt. Again, as usual, it will be Main Street paying and bailing out the corrupt bankers for a third time in 20 years. You would think that the population would have enough of an attention span to see what is happening but, aside from a small percentage of astute people, I see very little evidence that many really get what is going on.
It appears that most are sucked into the idea that you have to be with one side or the other. This is, I believe, done on purpose by those in charge to cover up the true story- the bankrupting of America.
It is ok to talk about anything else- just not that!
Keep the attention focused on hating each other and baffle the masses with BS stories that mean nothing in the scheme of things (look up project Mockingbird) while the looting of America is almost complete.
Cities and states that can’t conjure up money out of nowhere are now at the mercy of the Fed. They will either need to be bailed out (I believe they will be bought out- far worse!) or slash spending, services and pensions. Most states by law cannot go bankrupt- even though many are in reality. Buckle up!
It is obvious how destitute the lower earners have become. Prior to this outbreak it was reported that over 40% of Americans couldn’t come up with $400.00 for an emergency without more debt or selling an asset. This means ANY interruption of income or unforeseen bills could be catastrophic for those in this position. What do you think is happening NOW? Many are already counting on handouts and “money” conjured up from nowhere to survive for today. I also have read that people earning up to $200,000.00 per year who were living right up to their means are in a similar position.
With all of the cheerleaders telling people it’s time to buy let’s look at a few icons who are weighing in.
While Warren Buffett hasn’t said much his actions speak FAR louder than words. RECORD AMOUNT OF CASH. Doesn’t see anything compelling to buy. That’s a sign!
Major hedge fund managers like Ray Dalio, David Tepper and many more are calling this the worst risk-reward they have ever seen.
The markets, while down from the highs, are still the most overvalued they have ever been.
Keep this in mind. The Fed and other central banks are ACTIVELY keeping gold suppressed and paper assets propped up. One day it will not work anymore. In the meantime, here are the YTD results even with all of the interference:
Index Close on 01/02/2020 Current 5/15/20 + or – % change
DOW 28,868 23,500 -5368 -18.5%
S&P 3,257 2,833 – 424 – 13%
NASDAQ 9,092 8,859 – 233 -2.6%
GOLD 1,528.00 1750.00 + 222.00 +14.5%
My opinion is that these numbers will diverge wildly when the “printing” fails to work.
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