Not to name names, Gene Epstein, you fucking moron...
Last Friday, GDP growth missed Trump's 4% target by a factor of 100% while he announced his Muslim Travel ban. The dollar imploded and on Monday the S&P gapped down for its worst day since the election. This Friday, wage growth missed by a factor of 200%, Amazon imploded due to weak revenue, and Trump rolled back Wall Street regulations. Therefore, next week we'll watch the dollar final implode which is all Trump's plan - the long awaited event that will bring about mega capital implosion. And, while capital is imploding in real-time, ZeroClue's cabal of boy-men will keep us informed on how many McJobs are being lost to robots serving jobless consumers.
In other words, Globalization in a nutshell: the pyrrhic victory of capital over labour, leading to total collapse caused by lack of wage income aka. "revenue". All occurring as corporate whores push for ever-lower wages and corporations invest in over-capacity. It's a plan that only FULL RETARDS could buy into, and by all accounts they are welded to the Titanic this time. It's called indentured whoreitude - the belief in the impossible caused by over-investment in the impossible. Moral and intellectual bankruptcy leading to financial bankruptcy.
"What do you mean there's no such thing as a jobless consumer?"
Remember the Asian Financial crisis? I do. Japanese carry trade money flooded the Asian tigers and then reversed suddenly when growth slowed. The currencies collapsed as the unwind accelerated, imploding Thailand, Indonesia, Korea, Malaysia, etc. and finally Russia. Fast forward, and this time, the hot money is in the S&P 500, compliments of fake reflation and a wage increase that never materialized...
Then again, Trump wants a weak dollar, so now he's getting his way...
You know you're delusional when...
What caught my eye this week, aside from non-stop short-covering was the fact that stocks and bond yields went one way, while the dollar went the other. In other words, a divergent bond market was the only thing that kept the dollar from going into total meltdown. Which sets up next week for extreme hot money risk combined with extreme rebalance risk, as the Trump reflation trade unwinds big time...
USDJPY (red), 5 year yield (black), banks (gray):
This ~112 level has been tested eight times on the daily, in the past three weeks...
Another view
Long bonds versus stocks. Bonds did not confirm the new high in stocks...
The rest of the world got the memo that the Trump trade is over, but *someone* didn't...
Value line / S&P ratio
The last mega caps rolled over this week...
Mega cap new highs
Emerging Markets led this week, finally recovering their Trump-inflicted losses
However, unlike 2008, global risk was fully ignored in this cycle.
And payback's a bitch...
