During yesterday morning’s pointless run-up in valuations, I remarked how I wasn’t concerned, because the broader trend was with the bears. Likewise, with this morning’s smack-down, I’m not dancing on the table with glee, because it’s just another knee-jerk response to what now seems like a daly tit-for-tat response between China and the U.S. As I keep saying, it’s all about February 9’s lows. We need to break them and close beneath them to get cookin’.
It has in the past been “the financial crisis”, “the Euro crisis”, “Greek debt”, “Italian banks”, “the fiscal cliff”, “Brexit” and so on. Every one of those events an extension of Keynesianism and its debt-leveraged monetary magic tricks. But now the buzz phrase is “trade war”, a different kind of animal.
The brewing trade war with China is different. With every damn one of the events noted above we here in the anti-hype environs of nftrh.com (and before it, biiwii.com) have tried to maintain perspective about why it was occurring (Thing 1, which we had anticipated in essence if not in the exact way it played out) or why they would not prove long-term bearish or bring on the end of the world (Things 2-6). [Editor’s Note: at first glance, I thought this was a Biblical citation, until I realized there was not a book of Things, at least not in the King James Version to which I am accustomed. – Tim]
Indeed, we often note that inflammatory market events prove most often to be sentiment resets and buying opportunities as the herd pukes up its asset holdings. Keynesianism after all, has an elasticity to it despite its obvious and one day terminal faults. The elastic keeps stretching to this day. (more…)
Me back on the 11th……..
I heard on the radio that the Obamas had their official portraits unveiled at the National Portrait Gallery yesterday. I was curious to see them, since I assumed they would be grand and stately representations of the former President and First Lady. Umm, having seen them, my only response is: WA HA HA HA HA! Are you serious?!?!
Since everyone’s obsessed with the potential shutdown, let’s reflect a moment of the engines of government working right now. For instance – – although a $21 trillion debt and its suffocating interest is going utterly and completely ignored by every politician in the country………(and that doesn’t include unfunded liabilities):
We here in California at least benefit from bold leadership on the big issues.
A Slope classic: