There won’t be a victory lap. We can start with that fact. I’ve done this long enough to know what a multi-dimensional error that is.
Don’t get me wrong. The mini meltdown taking place in crypto and tech stocks is a delight to my soul and made it very hard for me to sleep in anticipation of Monday’s opening bell. I mean, honestly, there’s one particular meme coin I’ve been watching carefully as it lost 66% of its value in just a week, and seriously, it couldn’t happen to a nicer bunch of folks.
Added to which, the slippery devil David Sacks, who clearly worships money above all else, has been chosen, as it were, to lead the entire AI charge, and there’s a reasonable chance that, in the end, he looks like an utterly inept turd. Seriously, if you were stranded on an island with this guy, you should sleep with one eye open.
Adjunct to the aforementioned Sacks is the progeny of our new leader, both of which should thank their lucky stars that there is, in fact, to march toward a meritocratic society. If there were, one could only imagine what 7-Eleven would hire either of them as an assistant night manager.
As it is now, they are both leading the country into the storied world of crypto. Not even a week in, things are looking a little shaky.
Seriously, though, how much MORE good news could the likes of Bitcoin get? You already have:
- An endless sea of declarations from the new powers that be about how they will do anything, and I mean ANYTHING to pump up the crypto fantasy;
- The prospect of the bankrupt United States going more deeply into debt, Michael Saylor style, to create a “strategic Bitcoin reserve” (for all the good that’ll do us);
- And, just this weekend, a pronouncement that all U.S. based crypto
scamsprojects will be FREE of federal taxes!
Yet with ALL that pandering good news, Bitcoin has simply woken up in a bed of its own fecal matter.
Of course, the bombshell that hit over the past 72 hours is DeepSeek, which apparently is a success story from China in which they have matched or beaten OpenAI at their own game WITHOUT EXPENSIVE HARDWARE.
Let that sink in.
Jensen Huang figured he had the world by the balls, because he owned all the chips that AI companies needed to pay through the nose for if they wanted to be in the AI game, and the word on the street now is that Jensen can take both his arm tattoo and his chips and shove them right up his multi-trillion-dollar ass, because inexpensive chips can be made to bring the same results.
It all seems a bit too poetic. Take the elderly octogenarian Larry Ellison, who has a penchant for boinking women one-quarter his age but doing press conferences with his peers. He and his ridiculous dyed hair stood at a podium a few days ago to proudly take part in the performative Stargate nonsense, about which I’ve already written at length, and saw his ORCL stock blast to lifetime highs. Suffice it to say that the chilling DeepSeek news has fallen faster than Larry without his Viagra. The entire rally has been laid waste.
To say nothing of what’s going on with Jen-Hsun Huang’s NVDA shares.
As I said at the outset, however, there will be victory lap, in spite of all this awesomeness going on. I’ve learned to utterly and completely distrust this market.
I am certain a global financial cataclysm is going to unfold, but it isn’t going to be in a smooth, clean, orderly fashion. The permabulls (99.999999% of Earth) are going to go down kicking, screaming, and shouting for bailouts and the banning (and jailing) of bears. Bulls aren’t that bright, so they rely on force.
The VIX, which managed to get back above 20, has already retreated back into the teens pre-open. If the world had any sense, this sucker would hang out in the 50s on a regular basis, but this is a captured market.
Speaking of permabulls, the Russia-loving, Trump-worshipping, Goldman-Sachs-licking Zerohedge wasted no time in printing up stories about how none of this should worry your sweet little head. Like I said, there are about seven bears left on the planet, and the rest of humanity is going to do everything it can to crush decency, discernment, and common sense. Even most Slopers have bought into this psychosis.
We can enjoy this moment in the sun, however. Let’s face it, we live in a topsy-turvy world. Just a few years ago, if you came up to me and said, “I know a guy who is an alcoholic wife-beater on his third marriage who has tattoos all over his body,” I would naturally wonder why you were hanging out with the Hell’s Angels. The joke’s on me, isn’t it?
Hang in there, my six fellow bears. They’ll all eventually eat each other alive.
