Tuesday, March 17, 2020

FOMC: Fear Of Missing Crash

What today's Ponzi capitalists demand is a total lack of regulation when times are good and government bailouts when times are bad. Today's corporate mad men are nothing more than inter-generational thieves granted open access to the Federal Treasury by their Criminal-in-Chief...

The poster child for bailout corporate criminality of course is Boeing. This is the company that co-opted the FAA to get the 737-Max fast track approved and in doing so by-passed standard design principles to save money. Culminating in an airplane "designed by clowns who are supervised by monkeys", according to Boeing's own engineers. In the meantime, management was sucking the company coffers dry to pay for stock buybacks to finance insider cash outs. Now their balance sheet is impaired and their order book has collapsed, so they are demanding a government bailout.

Of course Boeing is just one of hundreds of large companies that have impaired their own balance sheets due to insider cash outs. Multitudes of which are now demanding public bailouts.

Trump of course, is no stranger to rapacious criminality and massive bailouts, therefore he has already promised bailouts far and wide - including cruise ships and casinos. Because we all know that these are vital economic industries.

There is no real risk to the economy that would arise from bankruptcy re-organization for these over-leveraged industries. In fact these companies would benefit from a recapitalization. As long as they are cash flow positive, they will be re-financed with new capital. However, the current shareholders and the current debtholders would be wiped out.

Life goes on. THAT is capitalism.

What this Coronavirus points to and the pandemonium response of shutting down the economy, is a society that can no longer handle even the slightest discomfort in any direction. A society of candy asses hiding from the truth and demanding bailouts from their own stupidity. Two days ago, the CDC recommended no gatherings of greater than 50 people. Yesterday, Trump said no gatherings of more than 10 people. That's a small Mormon family. We now live in a totalitarian state, wherein the government controls where we go, what we do, and who we see. 

Yesterday, Mitt Romneybot was speaking in favour of heli money. Today it was Trump and Mnuchin. The Federal government balance sheet will now be officially destroyed. 

Welcome to Japanification on steroids:

Below we see the roadmap for inflation/deflation. Notwithstanding imminent heli money, as long as people are quarantined to their homes, this money will not find its way into the overall economy. Sure, grocery stores and pharmacies will do just fine. Amazon will mint coin. But the local bars and restaurants will see none of this money until the quarantine is lifted. Which means that the most vital sector of the entire economy - small business is now sans bailout. One must take that fact into account when predicting the timeline for "reflation". It is not imminent. 

Trump is now predicting this will last until August. 

Most small businesses won't survive this asinine self-imposed depression. It's only because Trump and company lie constantly about the state of the economy and Faux News propagates these lies does the average idiot accept this mass quarantine. They all believe this economic downturn is temporary.

If they had any clue that they will emerge from this politburo-ordered vacation totally bankrupt, I highly doubt they would be as sanguine about hiding from an illness that for most people will amount to nothing more than the flu. And which most of us are going to get anyways. 

Nevertheless, this biblical carbon collapse was all the inevitable fate awaiting a society commandeered by idiots who believe that Trump is their saviour. 

Getting back to the casino. My prediction of an algo bounce at the key support level was not disappointed.

Here we see the last few weeks in a nutshell. One week ago was the Biden bounce on Super Tuesday 2.0. The noose has tightened every day since: 

Here is some of the carnage that has been wrought at the individual stock level:

Tomorrow of course is the FOMC meeting, however they already shot their wad. So how that meeting can lead to anything more than human history's most massively coordinated sell order, is beyond me.