- paraphrase Warren Buffett
First, Trump's own economic team sold the Trumpflation hoax. Next, it was bank executives. Now, the rest of Wall Street is piling on. Wall Street sharks may not be the smartest people on the planet, but they are the most cunning. If there is an edge or angle to be gained, they will find it and exploit it ahead of everyone else. Which is why ironically Trump's own cabinet were the VERY first ones to bail on the fake "Trumpflation" trade:
A key takeaway from earnings so far is that we have confirmation of a slow-down in lending and a related slowing of the economy. The other obvious takeaway from earnings is that we’re pretty deep into the current credit cycle. If anything, the Fed should be thinking about mild easing. But instead Janet Yellen & Co are trying to “normalize” rates as the economy slows.
Spot the magical thinking:
Treasury Secretary Steve Mnuchin on Monday became the latest official to dial back expectations for a time table that included a tax plan by August.
In the bond market, there was little surprise. Bond yields, which move inversely to prices, have been falling for weeks
"At this point, it's either tax reform or bust, the stock market is hanging on the prospect."
What does he know, he's just the Treasury secretary and he sold already anyways...