Tuesday, October 9, 2018

The Second Coming Of Bozo The Clown

Those who believe that Trump is their saviour need to learn a hard lesson in what is right and what is outright fraud. Because they didn't learn anything from their last Bozo...

Stock market pundits are quick to point out that on average September is the worst month for stocks. Be that as it may, all of the biggest crashes came in October: 1929, 2008, 1987:

"In many aspects, the current constellation reminds us of what happened in autumn 1987:

Fed was hiking rates deploying a hawkish tone
Chair Greenspan hawkish rhetoric
global economy seemed to trail the US… supported by the second Reagan tax package kicking in in 1986
The consensus assumed the rest of the world (RoW) - notably Europe - was running wider output gaps and hence was surprised when the Bundesbank withdrew liquidity in September 1987."

In other words, the above warning is essentially identical to what Trump warned of less than two months before he became "the second coming of Jesus". And he had the gall to call the Fed "political" while he has ignored his own warning for the last two years straight while inflating the bubble with constant bullshit and a massive bubble-expanding tax cut. Now he blames the new Fed that he himself appointed for raising rates too fast, despite the fact that Trump threw four percent of borrowed GDP onto the end-of-cycle bonfire. He has the economic sense of a bankrupt casino operator turned reality TV game show host.  

Getting back to October, and the topic of Europe. Here we see the German DAX at key support.

2018 has been identical to 2008:

The "retail is saved" stock buyback funded delusion just turned back into the "retail is dead" pumpkin

Homebuilders now in a bear market

Global trade wars


Momentum RISK OFF

Record rigged employment stats

De-regulated corruption

What's more believable, that it won't happen, or that it's already well underway?