Saturday, August 29, 2020

Trump Casino Is Rigged. To Explode

Having been ignored forever, America's exceptional inequality gap has now reached Banana Republican proportions. Trump's greatest ever MAGA financial WMD is about to fix that problem. In the process a lot of people are about to learn the hard way that poverty in America is not really about race...

"Four more years!"

All of America's unresolved problems are backing up like a sewer. The problem with make-believe "exceptionalism" is that it precludes any problems from ever being resolved. Instead, the same failed ideas are recycled over and over again, each time by bigger idiots. Today's pantheon of exceptionalists are wholly unaware that they are merely the lazy, entitled, and spoiled progeny of far greater generations.

Since his inauguration - long before actually - Trump has been fanning the flames of racial discord. It all started years prior with the Obama birther movement, which is what welded Trump to his alt-white base. Subsequently under his watch, the race war has exploded out of control. The Antifa left is now doing everything possible to help him get re-elected. By painting every non-black person as a modern day slave owner they are rapidly alienating their traditional moderate white supporters while at the same time bolstering Trump support. It's a failed gambit that seeks to eliminate all implicit bias by emboldening far greater explicit prejudice.

Amid this extreme inequality and race wars, Trump's thermonuclear financial weapon of mass destruction is now ready to explode. 

The Tsar MAGA bomb

"No moron saw it coming"

I doubt that this detonation will resolve this toxic 1930s existential culture war, however I know that it will go a long ways towards resolving inequality. The same way that COVID did more to reduce carbon than any 10 climate conferences could possibly imagine. Just give this corporate Idiocracy long enough denial and inconvenient reality will show up out of nowhere and solve all their problems for them. 

Now that the MAGA Kingdom is record lubed up for another four years, here is what I predict they have bought with both hands:

Extreme volatility

Limit down futures. Limit up futures. Trading halts

Robinhood platform crash

Brokerages offline for hours at a time. Class action lawsuits

Public panic

Central bank panic

Massive rallies, massive declines

In summary, a wholesale clusterfuck with plenty of blame and dissatisfaction to go around.

As I've said many many times, all that matters at times like these when the Casino Class is partying like it's 1929, is that Wall Street takes full advantage of the pump and dump:

"A stampede of companies have filed to go public in recent days, as they look to take advantage of a rapid recovery in U.S. capital markets, in a flurry of activity reminiscent of the heady days of the dot-com boom of 1999."

A global total of 241 initial public offerings has been recorded so far during the second half of 2020, marking the fastest start to the second half of the year since 2007"

Proceeds raised during the eight weeks since the start of July total $36.7 billion, up 140% compared with last year and a 10-year high for this period"

As I showed earlier this week, the S&P 500 double topped in the second half of 2007 (Oct. 11th, 2007). This week, the S&P gapped above its February all time high and rallied straight line higher Monday to Friday.

Which means this MAGA overthrow is the biggest bull trap in human history:

Speaking of squalid, politics have kept the latest stimulus bill in limbo indefinitely:

The exceptional inequality gap between the haves and have nots in the U.S. has reached Banana Republican proportions. Now it will get resolved. 

The hard way. When a generation of con men realize their time has come, and gone.