If we could chart “inequality,” it would at this point be rising parabolically – following the trajectory of the Fed’s balance sheet. I had been assuming Fed holdings would at some point be getting a lot larger. It seemed clear inequality would only get worse. COVID dramatically accelerated both trends.
Is three weeks a new record? That’s about how long Jay Powell’s performance bought him across most major markets. It was May 17, a Sunday night, when he appeared on 60 Minutes and, pardon me again, lied his ass off. One right after another, starting with the most obvious falsehood that his gang at the […]
The self-sustaining recovery is a fantasy that’s evaporated.What looks like a powerful, can’t-lose rally to newbies is recognized as distribution by old hands. In low-volume markets (as in the past few months), insiders holding large pos…
Was it good for you?
Fed QE: $8.801B Coupon Purchase 2020-07-31
If that wasn’t the most anticlimactic worst economic quarter in history. The numbers were just as bad as people were expecting – which is the point. It’s not like this economic collapse snuck up on anyone, nor did its scale and depth. We’ve all known from the very beginning what the deal was going to […]
No federal bailout or stimulus can reverse these three dynamics, and no amount of legerdemain can replace the spending of the top 10%.Few of those anxiously seeking a rebound in consumer spending take into account the top 10% of households account for …
Well the news is out. U.S. Economy Posts Sharpest Downturn on Record, says the Wall Street Journal. “The U.S. economy contracted at a record 32.9% annual…
More of the same, and the skies are not cloudy all day.
Fed QE: $1.733B Coupon Purchase 2020-07-30