Sadly, it's the end of the Ponzi cycle. There are no more fools to con...
So far, Q4 earnings reports are three for three misses for large U.S. banks:
U.S. Financial stocks have been imploding for a year straight, since their high last January. Today's casino rally, was compliments of short-covering in the most beaten down sector. Which is what this entire two week rally has been: short-covering:
It's not just mortgage lending that is imploding either, it's also trading revenues (FICC = Fixed income, commodities, and currencies).
Why is trading revenue imploding? Because it's the end of the Ponzi cycle, that's why:
Here is where it gets interesting...
The Federal Reserve has kept up its double tightening regime throughout the past year on the premise that the Trump mega tax cut was providing offsetting fiscal stimulus.
However, the shutdown is now killing the fiscal side of government stimulus:
In other words, Trump's stupid fucking wall, which makes no sense in any direction, is now deflating what is left of the Trump sugar high.
Don't take my word for it, straight from the CEO of America's largest bank:
Don't take my word for it, straight from the CEO of America's largest bank:
It's like a 747 in vertical takeoff that all of a sudden loses power mid-flight, because say for example the dunce-in-chief pulls the throttle all the way back:
"But what strikes the reader most about this cri de coeur for an indefinite shutdown is how nicely it fits into the annals of gutless conservative strategies for shrinking government indirectly and dishonestly. The most famous was the late-20th-century “starve the beast” strategy, which meant cutting taxes and deliberately engineering large federal budget deficits in order to force spending cuts"
I once called this “the fiscal equivalent of a bottomless crack pipe” for Republicans"
"But what strikes the reader most about this cri de coeur for an indefinite shutdown is how nicely it fits into the annals of gutless conservative strategies for shrinking government indirectly and dishonestly. The most famous was the late-20th-century “starve the beast” strategy, which meant cutting taxes and deliberately engineering large federal budget deficits in order to force spending cuts"
I once called this “the fiscal equivalent of a bottomless crack pipe” for Republicans"
"I work for the president, and I support a shutdown that brings pain to the 'resistance'"
"I was hitting the bottomless crack pipe and reading Jimmy Kunstler. After that, I don't know what happened..."
"I was hitting the bottomless crack pipe and reading Jimmy Kunstler. After that, I don't know what happened..."
