"You know I hate, detest, and can't bear a lie, not because I am straighter than the rest of us, but simply because it appalls me. There is a taint of death, a flavour of mortality in lies - which is exactly what I hate and detest in the world"
- Heart of Darkness, Joseph Conrad
"Don't worry, if they impeach him, Roger Stone has our next Manchurian Candidate waiting in the wings"
Denialist Supply Siders never admit that *Free* trade was never free - despite the fact that it was paid for many times over in terms of what really matters: factories, jobs, industries, intellectual property, livelihoods, marriages, families, labor productivity, capacity utilization, and fentanyl-assisted euthanasia. If that's free I would like to see what "expensive" looks like. Even Trump gets it - can you imagine being dumber than him? The entire Supply Side failed economic policy can be distilled down to Shedlock's rule: "If it's good for the consumer, it's good policy".
Denialist Supply Siders never admit that *Free* trade was never free - despite the fact that it was paid for many times over in terms of what really matters: factories, jobs, industries, intellectual property, livelihoods, marriages, families, labor productivity, capacity utilization, and fentanyl-assisted euthanasia. If that's free I would like to see what "expensive" looks like. Even Trump gets it - can you imagine being dumber than him? The entire Supply Side failed economic policy can be distilled down to Shedlock's rule: "If it's good for the consumer, it's good policy".
Unfortunately, that's not true and forty years of failure has already proved that point, but some people don't learn too good. When they say "good for the consumer", they mean in the most short-term way possible, without the slightest regard for the future i.e. before the "consumer" gets home from the store and realizes his job is gone. Which is how the Economics Department got away with this scheme - lazy static analysis, ignoring all long-term consequences. Globalization was never about raising up Third World incomes or creating a sustainable global economy, it was about arbitraging two markets. In arbitrage, when two markets are arbitraged, prices converge on the lower priced market. Basic Finance. In other words, for those who wanted the U.S. to converge on the Third World it worked, great.
Of course, now that the horses are out, some of them have recanted on their Free Trade profit scheme and are now 180 degree reversing course. In other words, what WTO protesters in Seattle figured out in 2000, Larry Kudlow just now figured out 18 years later. Because what the wise man does at the beginning, the fool does at the end.
Of course, now that the horses are out, some of them have recanted on their Free Trade profit scheme and are now 180 degree reversing course. In other words, what WTO protesters in Seattle figured out in 2000, Larry Kudlow just now figured out 18 years later. Because what the wise man does at the beginning, the fool does at the end.
Meanwhile, they still have their "Free Money" tax cut delusion in size. This time they are blissfully ignorant to the basic economic concept of "crowding out" whereby fiscal deficits raise interest rates and crowd out other borrowers. An especially acute problem at the end of the cycle, when they highly leveraged borrowers can least afford it.
Back in January, Tax Cut 1.0 sent bond yields soaring, imploding global markets and homebuilders. Then, again last month, Tax Cut 2.0, once again sent bond yields higher, further demolishing interest sensitive markets.
Of course now, the pain has spread to growth stocks and even Financials. Growth stocks don't like higher interest rates because their far in the future earnings get discounted at a higher rate, lowering their present value.
"You have all the classic signs: Corporate earnings decelerating, ... economic growth decelerating, rising rates at the short and the long end of the curve and a ... painfully narrowly focused bull market in certain sectors and primarily certain stocks,"
What he is referring to by a painfully narrow bull market are the last four mega cap Tech stocks still powering higher:
"Wall Street loves Maga. And that doesn’t just refer to the tax-cutting, deregulating, market-boosting Make America Great Again agenda from the Trump White House. There is another Maga now causing stock market palpitations. It describes the ever-narrower group of Big Tech companies leading the market higher: Microsoft, Apple, Google and Amazon."
Take Google off this list - it's already below the 200 dma. Which leaves three stocks - Microsoft, Amazon, and Apple.
Which means that the market has never been narrower than it is right now. And the lies supporting it have never been bigger.
"Believe me, we're in a way bigger fatter uglier bubble than before the election, and you can thank me and my own unique brand of bullshit. All we need now is borrowed tax cut to implode this entire gong show"
