Wednesday, May 10, 2017

The Last Days of Circus Clownius

The empire of internal contradictions is self-imploding under the weight of its own lies. The accusations flying back and forth between Roman Senators are mildly nauseating. I just read from a RepubliCon apologist that Comey deserved to be fired. Maybe, six months ago. It wasn't the firing of the FBI Director that was the issue, it was the timing, coming after Monday's revelation that there may have been a botched cover-up. Not to mention the fact that he found out about his own resignation on CNN. It could have been worse - it could have been on Twitter. That excuse for the abrupt firing belongs at the bottom of a Cracker Jack box. 

The real problem for Circus Clownius is that his own party wants him gone now, because he failed to deliver on any of the tax cut goodies he promised financial markets:

"Comey's firing endangers tax cut"

ZH: Comey Firing Pushes Back Tax Reform Agenda
"as far as the market is concerned, Comey’s dismissal saps Trump’s political capital and weakens relations w/Congress at the time when he is trying to move an ambitious pro-growth agenda through the Senate and House."

Meanwhile, we learned this morning that U.S. oil inventories fell "more than expected". No one knows what that actually means since this is the seasonal drawdown period. What we do know is that both inventories and crude production are higher than they were this time last year. So fake hope springs eternal.

Meaning that this rally will have the shelf life of a rotten banana:

Any questions?


"American companies rushed to lock in higher prices for future deliveries of oil as the market recovered late last year...That threatens to keep oil flowing from U.S. fields throughout 2017, even if prices fall."

U.S. Production

And further to the point about fake reflationary self-destruction:

"Tighter credit policies for most Commercial Real Estate (CRE) loans were the result of "a less favorable or more uncertain outlook for CRE property prices, vacancy rates or other fundamentals on CRE properties, and capitalization rates, as well as reduced tolerance for risk"

Raise rates and tighten credit policies, then act surprised.

Deja Vu