"The worse the reality of the economy becomes, the more we take on the reflexive belief in further and dramatic monetary expansion and the more attractive the stock market looks...drugged by the virtual simulation of prosperity and its acolyte QE"
An Idiocracy is a society that will believe the exact same lies from the exact same liars, over and over again. Each time expecting a different result:
"More free money!!!"
This is now the best case scenario for borrowed "GDP". As I wrote in my book, today's EconoDunces are going to pay a heavy price for conflating debt with GDP.
We learned today that U.S. industrial production is collapsing:
Private job openings are also collapsing, concealed by Trump's mega deficit
Outside of Technology aka. 5g trade war stocks, there is only one industrial sub-sector making new all time highs.
The Keynesian bombing of foreigners
Cyclicals are on the verge of third wave down
Autos, homebuilders, banks:
Transports:
Cass Freight Index
This is the weakest (breadth) rally of 2019
Remember last November when Emerging Markets saw their largest inflows since the EM peak in January 2018, based upon fake trade optimism?
Well, this week gamblers piled back into Emerging Markets, at the fastest rate in 10 months. And yet, the EM ETF was DOWN this week.
It turns out that FOMO inflows are a contrarian indicator:
In summary:
One stock accounted for 43% of the Dow's gains since the Dow broke 27.000 back in July.
And behind the largest indexed stock in the entire world, was the "invisible hand" of capitalism:
"Focus on the fundamentals, of simulated prosperity"
"Winning!!!"
We are one headline away from overnight explosion.
And then the Trump vacation from reality will end the exact same way it started.
Limit down overnight.
"When I say out loud
I want to get out of this
I wonder is there anything
I'm going to miss?"
