The Tyranny Of Dumbfucks Is Ending

It's abundantly clear that Trump's economic team doesn't have an IQ of five between them. Their end-of-cycle borrowed GDP crime spree is now blowing up the U.S. Treasury bond market just as Econ 101 would predict. Rising risk-free yields are in turn shellacking global risk markets, just as Finance 101 would predict. The Fed is selling bonds at a record pace, the Treasury is selling bonds at record pace, bond shorts are at unprecedented highs, there's no one on the other side of the trade. Fortunately, the cure for higher interest rates is implosion. Which means that rates will continue to rise until all risk assets implode. At which point the tyranny of amoral dumbfucks will be over...

In summary, some people need to grow up and learn that there's no such thing as "free money". The reflationary delusion lasted just long enough to get them back into the casino:

For ten years straight, what was bad news for the economy was good news for stocks (deflation, low rates, money printing). Now, at the end of the cycle, what is good news for the economy is bad news for stocks.

Late cycle wage hikes - delayed for ten years - are now sealing the fate of the casino. 

The irony is biblical:

Here we see the "lowest unemployment in 49 years"

Labor participation rate for 25-54 year olds (blue)
Official unemployment rate (red):

Notice that labor participation is now FALLING again, along with the "unemployment rate" - as was the case for most of the past ten years. Because falling participation is the ONLY reason unemployment is going "down". Everyone who wants a McJob, has a McJob:

A few risks have grown since February...

For example "full blown" trade war between the world's two largest economies.

Chinese stock markets have been closed this week for Golden Week, even as U.S. gamblers have been selling cross-listed Chinese stocks. 

What happens when China re-opens on Monday?

As we see here, new lows on the NYSE have been expanding for an entire month now, even as the S&P moved higher. 

Yesterday's new lows were the highest since the end of January:

Overall market breadth is much weaker now than in February:

Junk bonds are getting shellacked, from a lower high:

2016 is starting to look like best case scenario

It's all up to Financials now...

And end-of-cycle wage hikes