Wednesday, March 21, 2018

The Dumbfuck's Guide To Fixing Wealth Inequality

I think we all know where I'm going with this. What we've learned from history is that hairless monkeys don't learn from history...

Globalization was supposed to fix wealth inequality by raising the standard of living of poor people, not by imploding everyone else. Unfortunately, our dunce economists, politicians, and business leaders didn't get the memo. 

Here is where this unique approach to fixing wealth inequality gets interesting. Way back in 1929, Republicans were cutting taxes, the stock market was booming, gamblers were obliviously speculating in every risk asset known to man using record margin. Business and consumption sentiment was soaring. Wealth inequality was extreme.

But then as now, there was a fix for all that. 

"The Federal Reserve’s rate increase(s) had unintended consequences...In September 1929, stock prices gyrated, with sudden declines and rapid recoveries. Some financial leaders continued to encourage investors to purchase equities"

Speaking of elevated assets, the Fed today raised rates again by a quarter point and they also raised their forward economic outlook. 

Wall Street is going to regret sending all of the C students to work at the Fed. They apparently can't interpret their own fucking graphs:

Based on this "hawkish" view, banks rallied while the erstwhile "safe haven" yield trade further imploded. 

In other words, the Fed has successfully imploded the safe haven trade. 

While corraling dunces into banks deja vu of February:

We haven't seen failure at the 200 week in Real Estate (REITS) since...2008.

Last week:

Also last week:

"Safe haven"

They will be surprised when the BTFD retest is not "successful"