A Big, Fat, Ugly MAGA Crash

The political movement based solely upon a vacation from responsibility, paid for by all future generations, is now backed into a trade war quagmire of its own making. The reign of greed and corruption now self-destructing...

Going into the critical G20 summit, the Fed "put" beneath Trump's trade war re-election gambit, just got removed:

And no, they don't see it coming:

Fittingly, the four largest cap stocks in the casino right now are dubbed the 'MAGA' trade: Microsoft, Apple, Google, Amazon. In the past year, each of these mega caps took a run at the $1 trillion market cap, and then spontaneously imploded shortly thereafter. Microsoft is the last one above that level, making it the most over-owned and over-bought stock in the history of the planet, compliments of the dumb money bubble and passive indexing.

I think we all see where I'm going with this:

Someone who can be believed doesn't need to start everyone sentence with "believe me":

  

The catalyst for implosion today was the unwinding of what Zerohedge described last week as Trump's 2020 election rigging strategy. The plan to use trade war brinkmanship to coerce Fed policy. Because what could go wrong.

Today we found out: Having had sand kicked in his face, Trump's nominated Fed chief Powell came out swinging, indicating that the Fed policy mandate does not include rigging elections.

Fed Chair Jerome Powell said the central bank is assessing whether current economic uncertainties call for lower rates...He also said the Fed remains independent of “short-term political interests.”

At the same time we learned that lower rates may not be forthcoming, we got news today that the Fed has lost control over the housing market:

"lower mortgage rates haven’t unleashed a new wave of demand"

“It’s harder for the builders to compete against resale inventory that is priced significantly below where their asking price is now”

The other side of the trade ledger is capital flow:

"Chinese buyer enquiries on U.S. property were down 27.5% in the first quarter of 2019 from the comparable year-ago period"

It takes a special kind of hubris to take an existing bubble, make it 10x bigger by filling it with nothing but bloviated hot air, and then believe that the problem is "fixed".