Thursday, March 12, 2020

In Criminals We Trust

Trump's entire presidency will be remembered solely as a massive looting operation that exploded spectacularly. The legacy of the Banana Republican party...

Up until today, the Corona virus has been used as a rationale to buy stocks - as in, the downturn is temporary, therefore this is a buying opportunity. The sheeple have been getting buried deeper and deeper by their trusted psychopaths. Now limit down -25% from the highs, it's finally dawning on a few people that not only is this the end of the cycle, but the Corona collapse is massively accelerating the implosion of a record over-leveraged corporate sector...

Recall, Trump's entire corporate tax cut was used to finance stock buybacks, which impaired the Federal government's balance sheet. In addition, corporations borrowed massive amounts of money to buy back stock, impairing their own balance sheets.

Jim Cramer is now imploring Trump to take "radical action" to arrange the mother of all bailouts consisting of lifting ALL forms of taxation AND printing unlimited amounts of money for corporate use. In other words, reward criminal behaviour with even more free money.

ZH: Jim Cramer Calls For Government To Suspend Taxes, Print Way Out Of COVID-19

Jim Cramer is now managing the U.S. government:

Of course the plan is ludicrous even by today's ludicrous standards. It's corporate heli money on an epic scale. A desperate plan for a desperate cabal of criminals. 

Cramer has never been the sharpest tool in the shed, but he is at least bright enough to understand where this is all heading. Most of today's over-levered companies will not survive a multi-week global shutdown. He knows that the dominoes are already falling as credit markets slam shut. Hence he is calling for an unlimited corporate bailout. 

When the smoke clears from the rubble, history will say that U.S. capitalism exploded in 2008. Which was then followed by a decade of monetary Japanification. Socialism for the rich. Which super exploded in 2020. 

Every time Trump speaks now he pounds markets lower. Even before he speaks the futures tank. Last night he exploded the futures when he announced a European travel ban. He hadn't even informed the European leadership. He is a joke of a man who now has a toxic effect on markets - a continual reminder to today's criminal class that he is their Potemkin president intended merely to facilitate the plundering of the Treasury. He opened the door to the hen house, with assistance from his cabal of useful idiots. 

What we are witnessing in real-time is the unwinding of ten years of Japanification masquerading as "capitalism". Capitalism already self-destructed over ten years ago amid epic deflation. Of course the deflation we are seeing right now makes 2008 seem like a picnic.

As I write, the casino is halted limit down for the second time this week - the 1930s scenario I predicted two posts ago. Liquidity is non-existent, hence "safe havens" are now getting sold en masse. 

The S&P 500 (mid-morning Thursday) is in no-man's land bear market territory. Heading for a "re-test" of the 2018 lows.

Most of the selling is taking place overnight leaving U.S. investors holding the bag at ever lower levels. Getting buried by idiots telling them that this is temporary:

What we are watching in real-time is the Super Crash. The end of the longest bull market in U.S. history. Note the equal weight S&P is already BELOW the 2018 lows.

The pain in bond land is epic.

One year of corporate bond gains. Gone.

Now we see what Cramer is worried about. 

This "health" disaster is generating depressionary financial conditions:

With every passing minute, the exit from Trump Casino gets narrower and narrower:

Per my 2020 prediction, Trump knows he will be wearing an orange jumpsuit sooner rather than later.

As far as my prediction of mass rioting, clearly that has been quarantined. For the time being.


The sheeple are now going to learn their final lesson about trusting proven criminals with their money