Wednesday, March 25, 2020

MMT: Modern Monetary Thermonuclear Explosion

In 2019, combined fiscal (5%) and monetary (5%) stimulus equaled 10% of GDP, compliments of Trump's deficit which caused the overnight repo crisis. In 2020, fiscal policy (15%) and monetary policy (unknown) will likely approach 30% of GDP, as the Fed is once again forced to monetize the entire deficit. Position accordingly...

On the face of it, most pundits would view this amount of monetized stimulus to be unambiguously inflationary. And they would be right, IF we were not living in human history's largest credit bubble. As always, economics comes down to sorting out first order and second order effects. Which are often going in opposite directions. As the Fed goes forward with mainlining printed money straight into the economy, all of today's pundits are ignoring the 800 pound elephant in the room, the credit bubble.

Will creditors be willing to accept future payment in lower valued dollars due to inflation? No. They will demand a higher interest rate, across all credit markets. Once, again, as it was with the tax cut, interest rates will rise. I am not referring to the Fed rate, I am referring to market rates. 

In other words, by conjoining fiscal and monetary policy, the Fed just handed control of monetary policy to Trump. Meaning there is no control. From this point forward, the rate of inflation will dictate monetary policy. Which is another way of saying that the monetized deficit will cause interest rates to rise and thereby tighten financial conditions.

At some point the effects of monetized fiscal stimulus will entirely cancel out the effects of monetary stimulus. In a debt laden economy, this will ultimately be highly deflationary. Most people's incomes are leveraged multiple times via the debt markets. Meaning that a sudden rise in borrowing costs will cause a sudden rise in mass defaults.

What the Fed has done is pushed off the threat of Coronavirus defaults and merely delayed them until the monetary go juice works its way into the veins of the economy. Recall, the tax cut of 2018 dumped the S&P 500 -20% by the end of the year, for the exact same reason - an increase in reflation expectations.

By going down this new path of easy money, the Fed has replaced real demand from incomes with printed money. The overall supply of goods has not changed. The first order effects of this Coronavirus are highly deflationary. The second order effects coming after will be reflationary. However, it's at that point, when market interest rates will begin to rise beyond the Fed's control. Between rising defaults and rising interest rates, the credit markets will get obliterated.

Here below I show an approximated sequencing of events with ballpark timelines. We are right now in the most deflationary period in U.S. history. Whenever this quarantine ends, there will be aftershocks in the form of layoffs and defaults. In the background the stimulus package will begin to take effect. However, it will likely prove inadequate and require additional extreme stimulus. At some point stocks will have a tradeable rally long before the economy turns around. Perhaps in a matter of weeks from now. There will be no one saying "BTFD" when the tradeable bottom arrives. 

When the economy does finally bottom months or even a year from now, the incipient reflation will cause interest rates to explode higher. Between defaults and rate increases, the bond bubble will final implode. 

The fool's rally will end. Post haste. Having nuked the bond market, they will proceed to nuke the dollar. 

The Best Sugar Rally Record Plunder Could Buy

Capitalism is now wholly dependent upon socialism, for the rich. Which obviously proves which system is better. Today's bailout whores are praying that biblical plundering of future generations will save them from meeting inconvenient reality for the first time in their Disney lives. Fortunately, no one squanders borrowed money better than Trump...

The largest fiscal bailout in U.S. history just passed the Senate last night. Which brings the combined fiscal and monetary stimulus injection to level '11' full crack high, for those keeping track at home. As usual, everyone got bailed out except the people who need to get bailed out...

This is the Fed bazooka in visual perspective:

Weekly monetary injection:

Here we see the fiscal insanity that was just passed late last night:

Today's bailout whores are praying that this biblical profligacy is adequate to support the casino at these levels. Because as we see, the Dow was "saved" at critical MAGA support.

Trump's presidency is now at stake. 

Capitalism is now 100% dependent upon socialism. For the rich. 

Taking all of the above into account, there is only one glaring problem: While the economy is in unprecedented shutdown mode, the small businesses that actually need support the most, can't get it. It's all well and good to hand out "stimulus" checks, but it's meaningless if people are barred from frequenting local businesses. Which means that the money will get plowed into paying bills and paying down debt. And of course, the greatest beneficiary of this entire debacle.

In other words, the GDP multiplier of this latest bailout will be the limit approaching zero. Which is why deflation will continue to grow unchecked with every passing day.

Based upon the sheer magnitude of stimulus, this rally SHOULD by all rights last for days if not weeks. However, if it rolls over sooner rather than later it will be deja vu of the TARP rally in 2008 - too little too late.

So far, this rally has been led by the most beaten down sectors, including small caps, banks, transports, industrials, hotels etc.

Breadth is very strong.

What the bulls should be worrying about however, is the fact that Tech is lagging. Which means that the Tech bubble is at risk of final explosion.

Here we see Microsoft is clinging to the 200 day moving average.

Semiconductors and Chinese Tech stocks are trading in unison on the hourly. This rally is now one week old:

Here we see EM Debt with semiconductors in the background. Global risk is trading like one big brick.

In summary, this is the best sugar rally several trillion dollars could buy. Today's policy-makers don't have control, they have the illusion of control. Nevetheless, today's trapped gamblers believe their massive bailout will work.

Of course, if they are wrong, the level of fear and panic will be on a scale we've never seen before.

Tuesday, March 24, 2020

It's Not Too Late To Buy Gold. It's Too Early

Acknowledging the fact that gold is more of a religion than an asset class, here goes anyways. Bearing in mind this does NOT constitute financial advice...

Full disclosure, I just re-loaded my short gold via put options through April 17th, until I cash out, or until they close the casino. Whichever comes first. We heard the exact same arguments in favor of owning gold two weeks ago but I ignored them in favour of a 10x profit. Now gold has round tripped back to the recent highs. Offering another fat pitch. The only concern I have is that they will shutdown Trump Casino. 

Zerohedge: Gold Is Like Toilet Paper. If You Don't Have Any, You Will Be Very Unhappy

Where to begin. First off, physical gold IS like toilet paper - there is a short-term shortage, however in the longer-term there is a glut hanging over the market in the form of jewelry. A mere trickle of what is soon to come.

February 29th, 2020:
"Over the last few weeks, gold buyers have seen a frantic push by individuals racing to sell their little-used jewelry in the U.S. and Europe amid worries that the extraordinary price rally fueled by the coronavirus since the start of the year may soon run its course."

For those who own physical gold for the long-term, this will be the fantastic buying opportunity of a lifetime. A chance to keep averaging down lower and lower. I view gold to be the ULTIMATE belief in central bank alchemy. And of course I have absolutely ZERO faith in central banks' ability to solve this crisis. To understand my prediction for gold is to understand my entire economic hypothesis of impending extreme deflation.

It's ironic that this last stage gold rally is occurring amid the backdrop of a severe dollar shortage worldwide. One that has been well documented on Zerohedge. It's a known fact that gold trades inverse to the dollar and that very same negative correlation has been intact for the past several weeks. In other words, a bet on gold here is a bet that the Fed has the dollar liquidity crisis under control. They don't. It's about to get 10x worse, as Emerging Market currencies explode in every direction.

But, it's the gold technicals where things get really interesting:

Gold tanked in early March and then found a bottom last Monday (March 16th) following the Fed's QE announcement. Just as I said three weeks ago, it's a supremely crowded trade based on futures net specs, record ETF inflows, and of course non-top Zerohedge bullshit. Recall that the selloff two weeks ago was attributed to over-leveraged gamblers forced to sell gold to meet Tesla margin calls. A mere hint at what is about to come. 

Here we see gold on a weekly basis. The chart shows that gold is three wave corrective off of the 2011 all time high. We also see that gold volatility is extreme right now. A trip back to these key support levels will give physical gold buyers plenty of opportunity to average down. Which according to Zerohedge is what they want:

I have three criteria before I will be a buyer of gold:

1) All of the highly leveraged weak hands get margined out. Zerohedge stops spamming me with gold ads

2) The credit markets final explode under the weight of crushing defaults, bringing about extreme deflation

3) Policy-makers stop bailing out corporations and begin to consider serious middle class heli money. Something only Bernie Sanders has suggested to date. 

Getting back to Trump Casino, having predicted Super Crash in real-time, nevertheless, for the first time in a very long time, I am becoming neutral on my market opinion. I still believe it will go much lower, however, my trademark hyper-bearishness has abated for some reason. I think it has something to do with the collapsed carbon levels.

That said, the raw facts point to an impending super explosion lower in Emerging Markets which are sans bailout and evidencing greater dollar financing strains by the minute. In my opinion this latest S&P rally lasted just long enough to get more dolts onboard for the ride lower.

On the topic of today's Super Tuesday rally, I would note that the peak Casino high water mark of every week since this Super Crash began was Tuesday. This is not a prediction, merely an observation:

In summary, I hope everyone has enough toilet paper for what comes next. Because you never want to wipe your ass with a gold bar. 

Monday, March 23, 2020

Bailout Deathtrap

Surveying the carnage across markets, it's clear that the Fed and Trump have done a great job of maintaining complacency while investors are lowered into the abyss. MAGA Kingdom policy-makers have only one more weapon in their arsenal: Non-stop lying. And they are using it to full effect...

Anyone who trusts these people deserves their certain fate:

-30% later: "My bad"

These two headlines on CNBC from this afternoon sum up the ongoing Fed debacle  - despite "unlimited" stimulus the market is going down at the fastest pace in history, the only benefit being that euthanized gamblers still believe in bailouts. 

After last week's EPIC and humiliating fail, including a 1% rate cut and record liquidity, the Fed realized they have lost control over the casino. So this morning (Monday), they ramped the S&P futures by announcing they will do whatever it takes. It's the crowning achievement of a decade of intellectual bankruptcy. Sponsored by the ubiquitous belief that printed money is the secret to effortless wealth:

This latest bailout "rally" was deja vu of the emergency rate cut on March 3rd. It lasted all of :15 minutes. The Dow and S&P closed at new lows.

This moment of Fed panic was inevitable and predictable. Last night, 2008 bailout king Neel Kashkari brazenly stated that the Fed has unlimited money printing powers. Clearly no one who once believed they are the master of the universe wants to learn that they have been cleaved of all powers. 

We need to remember that the Fed and its cohort central banks drove a massive gap between asset valuations and economic reality going into this Corona disaster. It was such a good con job that according to Mike Santoli, no one saw this coming. It was the crowning achievement of modern alchemy. Therefore, with global markets crashing at the fastest rate in history, they have every intention of keeping that gap from ever closing.

Of course it's not working. 

The Fed's sole achievement to date is to sponsor extreme complacency in the face of ongoing meltdown. Every time they come up with a new gimmick the market ends lower. It speaks to the desperate intellectual bankruptcy of the day, that anyone would believe that artificially inflating asset values while their intrinsic values crash, is a good idea.

What happened to worker paychecks? What happened to real demand, unadulterated by Ponzi debt and low interest rate gimmicks? A relic of a bygone era.

Sadly, the Fed can't rescue "stocks" while their real values head to zero. Most people are of the belief that stock values are indicated by the last price paid for them, when in fact the underlying values are dictated by their forward earnings. If earnings crash to zero as they are now, then the price of stocks will soon follow. No amount of S&P futures manipulation will keep that from happening.

Extending out to other asset classes, the story gets far worse. The Fed can't corner every market on the planet. They have officially started buying in the corporate bond and muni markets, but in those markets they will merely be price takers watching their portfolio of junk assets crash to zero. They haven't figured out that buying assets in secondary markets doesn't make those assets have greater value, it merely means the Fed is now the bagholder of last resort while smart money stampedes out the open door.

Does this look like they are fixing the credit markets?

"We will do whatever it takes"

Also today, a second Senate bailout vote failed. However, as I've said these bailouts for corporations will do nothing to save the actual economy. 

At this point, nothing the government does is going to save the economy. We are heading into depression, and the only thing policy-makers can do now is alleviate poverty and suffering.

Anything else they do is a waste of time and money.

The stock market is toast. It won't be a good "value" until it declines at least -80% from the all time high in my opinion, given the amount of economic carnage taking place.

I throw that out merely as a ballpark placeholder to say that at best we are halfway to the bottom. I believe that a large portion of the S&P 500 will be bankrupt by the end of this year. Which means stock holders will be wiped out.

Deflation is flooding the world and it's totally out of control. Policy-makers are out of conventional and non-conventional ammo. Next they will be forced to consider MASSIVE heli money for the masses. The current bill now stalled in the Senate is chump change compared to what will be needed. 

Until that happens ALL asset prices are heading lower. Maybe not every day, but certainly on a long-term basis.

The Fed as of today is not only out of ammo, they are totally out of credibility. The belief that they could control asset prices in divergence from the underlying economy went on for a decade straight. But now the divergence is accelerating to the downside taking gamblers for a ride to the bottom.

Sunday, March 22, 2020

The Last Days Of Bailout Capitalism

Capitalism exploded spectacularly in 2008, you should have seen it. Whatever they call this system of  bailing out criminals is the next to explode...

The seeds of this crisis were sown back during the depths of the global financial crisis when a stunned and fearful populace turned a blind eye to bailouts for criminals and allowed corporate shock doctrine on a massive scale, in order to "save the system". In the event, no one was held accountable for massive amounts of fraud and criminality. Which is why during the past ten years, fraud and criminality became business as usual. Today's historical illiterates have not even the slightest clue how Darwinian the U.S. economy has become over the past several decades. Still sniffing the glue of American mythology, while getting fucked over the exact same way as last time.

The story of this past decade will be one of persistent poverty-driven deflation emanating from a collapse in the labor share of GDP post-2008. Otherwise known as the worst economy in U.S. history. A surfeit of low wage junk jobs, nominal benefits, zero job security, and no career upside. The wholesale commodification of labor to the benefit of offshore bank accounts. Each successive round of shock doctrine drove the country further to the right, further towards the corporation, further towards profit. This past decade was a bonanza of insider stock buyback cash outs financed with record low interest rates. 

Now, however, corporations are record leveraged. Which is why they are already laying off workers en masse. This shutdown is only days old, yet they are not waiting around to see how it turns out. In other words, untold numbers of companies have already made the calculation that they would rather layoff their workforce than weather a few weeks of no revenue. 

And of course in the United States, there is no penalty for mass layoffs, so they took the easiest course of action. In other countries, based upon an employee's tenure, companies must pay mandatory severance pay for layoffs. Which makes it far more difficult for companies to lay people off at the drop of a hat. 

Nevertheless, in panicking en masse, U.S. companies have succeeded in making the overall demand collapse far worse and far more intractable. In the mind's of today's pundits, these companies will merely turn around and rehire everyone back a few weeks from now. That isn't what's going to happen. U.S. companies are far quicker to lay off than they are to rehire. Earnings visibility is currently nil and getting worse by the day. So these companies won't begin rehiring any time soon. If ever. Regardless, most large corporations are too heavily leveraged to be saved, which is why bailouts of corporations are a total waste of money. They need to be recapitalized. They are zombie companies now and bailing them out will only make things far worse. ALL of their cash flow will go to debt service. Zero investment.

What I am describing is what Federal Reserve governors are seeing all across the country - a total collapse in demand. Which is why companies are panicking, because they know their balance sheets are now ticking time bombs. And yet with every mass layoff, the duration of this GDP depression grows longer. What one company does to save itself appears as prudent capitalism, however, when they all do it at the same time it's an epic disaster.

"If his gloomy jobs projection proves to be true, unemployment would be worse than it was during the Great Depression and three times worse than the 2007-’09 recession"

With the appropriate measures, Bullard said he’s looking for activity to rebound quickly."

In other words, he is predicting a v-bottom from a one quarter depression. Which isn't going to happen. This virus merely got the ball rolling on corporate defaults which were already teetering on the brink of insolvency. This got the dominoes falling. Millions of over-leveraged consumers are one paycheck away from insolvency. Trump's mega deficit was the only thing keeping the U.S. out of recession in 2019. 

In the future, corporations need to be adequately "incentivized" to maintain adequate contingency buffers for short-term downturns - plans that don't involve mass layoffs at the drop of a hat. IF this really was only a few week crisis, as so many believe it is, then in a properly functioning economy there is no way it should lead to 30% unemployment. Which shows how non-resilient the U.S. economy has become, that we are already facing 3 million layoffs in only one week of shutdown. 

Unfortunately, it has become far too easy and cost free for companies to jettison their workforce at the slightest downturn, while putting all of the costs on the public social system. The same system they have fought to eliminate. Thanks to Bush and Trump, most of these companies no longer pay any taxes, so they are net takers from the U.S. economy.

ALL bailout efforts should focus on small business and laid off employees. I have no doubt that this turn of ideology is coming sooner rather than later. And it will be laced with more than a significant amount of rage. How they quarantine rioting will be an interesting challenge.

Just know it's coming.

Getting back to the casino, Senate discussions on the fiscal bailout collapsed late on Sunday because Democrats are insisting on more money for families and less for corporate bailout whores. The Republicans want the opposite.

As it was last Monday, the futures opened limit down, however, this time they are bouncing off the limit. IF the TARP bailout circa 2008 fiasco plays out again, the market will tank tomorrow morning and then rally into the inevitable "deal". At which time the market will explode lower. If the casino is still open by the end of this week, I would be surprised. They will give it just enough enough time out for everyone to realize this is a new depression with no v-bottom in sight.

And then you will see biblical panic, when the sheeple realize they squandered a decade of their lives bailing out criminals, and then got bilked all over again by the exact same people. 

In Idiots We Trust

What we have today are fools who place their trust in even bigger fools. This past week monetary policy backfired, now we are very likely going to see the same thing on the fiscal policy side...

Trump's signature casino bankrupting profligacy will be on full display this week:

It's the hallmark of this Idiocracy to forget history, including recent history. This past week, two senators were accused of insider trading in February because they sold their stocks ahead of the market crash. Their accusers seem to forget that the Corona pandemic was a widely known fact in late January. Which means that EVERYONE knew what was coming and yet the market melted up anyways. I called it the "Corona" meltup, the dumbest thing I had ever seen. Which means that we've reached a point in this Idiocracy wherein those who refuse to believe the Sean Hannity controlled narratives are now "insider traders". They have privileged access to the inconvenient truth others don't have. 

It gets far worse of course in terms of widespread amnesia. For years Trump has been clamoring for lower interest rates. Over the past few weeks that chorus has grown louder and louder. On March 3rd, the Fed slashed rates .5% - the market rallied for fifteen minutes and then crashed. This past week on Sunday night, in a shock and awe move, the Fed slashed rates an entire percentage point to 0% AND re-started Quantitative easing. When the futures opened, they were limit down in :5 minutes. Monday was the worst day for markets since 1987. On Friday this past week, the Fed injected a record $1.1 trillion of combined stimulus into markets (repo + QE), the market ended the week down -17%. I have said all along that the next attempt to re-start QE would be an abject failure and this week we got ample proof. For those who adamantly believe that printed money is the secret to effortless wealth, it was a very bad week indeed. 

And yet, the belief in bailouts and free money has carried over into another week. This time on the fiscal side. The belief that the government can bail out the entire economy, which is now offline. The net effect of this continued belief in free money is mass complacency among the general public. They have been told that the government can fix this with borrowed money. 

However, this past week, despite the restarting of QE (Fed bond buying), we witnessed the largest Treasury bond selloff in years. How could that possibly happen with the largest bond buying program in years? Because bond markets were spooked by the Trump fiscal stimulus package making its way through Congress. As it was with Trump's asinine tax cut, we have now reached the point at which fiscal "stimulus" is doing far more harm than good. While Trump is busy trying to bailout his fellow criminals, the vast remainder of economic participants will very like now face higher interest rates and no bailout. It's called "the crowding out effect" - meaning the government is crowding out other borrowers in a limited credit market. Add in a global dollar liquidity crisis, and Trump extracting another $2 trillion of liquidity out of bond markets isn't going to help. 

Note that the magnitude of the stimulus package grew an astounding 100% since Wednesday despite the impact the smaller version had on the bond market:

"Long-term U.S. debt yields leaped Wednesday as investors sold 10- and 30-year bonds amid discussion about a potential $1 trillion federal stimulus package to help goose the economy."

Traders sold long-term bonds in anticipation of a deluge of future debt supply and the government’s eventual need to auction even more Treasurys. Any glut in debt supply could cause bond prices to fall and their yields to rise."

The rapid rise in yields also appeared to spook equity markets on Wednesday. Dow futures hit their “limit down” level in premarket trade Wednesday, then tumbled more than 4.5% in morning trading."

I have said all along that heli money is going to nuke the credit markets. This past week we already got a small taste of that scenario. This week, once again, we will find out who is right and who is wrong. I can assure you, those who are betting everything on free money bailouts can't afford to be wrong.

Nature has checks and balances on how far profligacy and abject irresponsibility can be taken at the expense of future generations before it all blows up in the faces of the generation attempting to plunder the future for now.

I believe these obedient corporate gerbils have reached the end of the line and can no longer be bailed out from their own rampant stupidity.

We will soon find out.

The pavement looms.

"Some investors sounded alarms about the Covid-19 outbreak as it hit China, but the brutality of the equity-market sell-off has been so extreme and rare, no one would dare have predicted it in detail."

Investment-grade corporate-bond risk spreads have burst with record speed from historic lows to levels that roughly price in recessionary default rates."

In other words, the proximate cause of this historic "unforeseen" crash was caused by fools who believed that China could be wiped off the map to U.S. benefit. The ones who drove the Corona melt-up in February to all time highs for U.S. benchmark indices. Amid a manic reach for risk.

February 20th, 2020:

"Veggie-foods maker Beyond Meat trades at 282 times estimated earnings. Tesla’s stock price has doubled this year. Virgin Galactic’s stock price has nearly tripled in 2020.

The world’s most profitable company, Apple withdraws its revenue guidance, and the technology-heavy Nasdaq Composite actually closes higher on the day."

However, the REAL reason for this selloff were the ubiquitous fools who ignored the overwhelming evidence that this was the end of the cycle. Aided and abetted by end-of-cycle central bank easing on a scale that artificially compressed yield spreads, giving the Jedi Mind Trick of low risk. I would include the author Mike Santoli in the category of the easily conned. A highly paid trend-follower who now has to bury recent history to pretend this was an unforeseen event.

Otherwise it would mean that he was in the category of idiots. 

As it was post-Lehman, when all of these bailouts are out of the way, the REAL selling will begin. So far this has been child's play. There is one more group of stocks that have yet to be sold, which is also the main reason this selloff is far from over:

"There may also be reasons related to the ongoing coronavirus epidemic that could be supporting some of these names. For instance, Amazon has announced plans to hire 100,000 additional workers to deal with a surge in orders as retail customers avoid in-person shopping"

The term "smart money" is now going to be put to the test

Just remember, "No one saw it coming"

Friday, March 20, 2020

THIS Is Capitalism

Now we will see how today's imaginary capitalists enjoy real capitalism, sans bailouts...

"Once I stood to lose her
When I saw what I had done
Bound down and flew away the hours
Of her garden and her sun
So I tried to warn her
I turned to see her weep
Forty days and forty nights
And it's still coming down on me"

Surfing the intellectual black hole of Zerohedge I came across a meteor strike article only I would find interesting. It informed us that two asteroids will be vapourized by Earth's atmosphere tonight. For me, it was a reminder of the miracle of the blue planet and the natural protections built in to the only habitable planet in the known universe.

A stark reminder of all that we take for granted.

It was clear this week that Mother Nature stepped in to protect the hairless monkey from ourselves. No question, many will die from this virus, many more will suffer. Unlike the virus itself, the economic impacts of this Twitter-ordered economic implosion will reverberate for decades. Nevertheless, this was arguably the most innocuous way to end global self-destruct mode. 

All of those prognosticators who until now were predicting inexorable population growth and inexorable carbon expansion as far as the eye could see, were this week proved instantly wrong.

Few people seem to comprehend what this event will do to the all-important birth/death ratio. This virus overwhelmingly selects against the elderly as do the economic impacts. Meanwhile, young people will postpone family formation for years. Immigration is a thing of the past. The largest mass migration in human history - which only a month ago was considered a human rights crisis - is now deemed an irresponsible pathogen. Borders have been slammed shut worldwide, in the name of social media mandated political correctness.

You see, Mother Nature took a look around and realized that the planet was now in the hands of the dregs of humanity. Corporate-owned criminals who would sell their souls to make the quarter. Culminating in the empty souled desecrator. So, she took matters into her own hands. The alternative was to continue down the path to self-destruction until such time as there was nothing left to save.

Last week the story was bond annihilation as the Fed raced to catch up with bailout Donny. No matter how much money they print, he spends far more. This past week the story was the obliteration of the oil market.

This week, demand for bailouts came from every sector of society and landed on Donny's desk. Unfortunately, he was out golfing, because the weather has improved of late. The links were calling. Soon even the dumbest of dumbfucks among us - friends and family so forth - will come to realize the problem of having the laziest idiot in history now overseeing an existential crisis. Sadly, Orangutan and company can't bail out everyone at the same time. They can't even bail out the criminals they are trying to bail out. They are that incompetent. 

Not for lack of trying. 

This heli money package will likely explode the already unstable bond market on Monday:

Total deficit spending in 2020 will be AT LEAST 15% of GDP:

As for the Federal Reserve, they are about to learn a very important lesson in asset pricing and markets in general - one the BOJ and PBOC have already found out the hard way. The reason the Fed can't rescue U.S. stocks, corporate bonds, muni bonds, WTI crude, Emerging market currencies, Bitcoins, small businesses, Miami condos, Vancouver crack shacks, Boeing, airlines, cruise ships, all restaurants, hotels, strip malls, stop me any time - is the same reason they can't even control the Treasury market. Because they are not on the other side of EVERY trade.

You see, what the other central banks have learned the hard way is that just because an idiot pays a million dollars for a brick, doesn't make ALL bricks worth a million dollars.

ALL global assets are right now being re-rated lower with respect to what they are worth vis-a-vis collapsing liquidity and collapsed demand.

Which is why, despite the largest Fed stimulus package in history TODAY, the Trump Casino finished the week at the very lows of the week. One more sugar rally down the drain.

"For the week, the Dow dropped more than 17%, its worst one-week percentage drop since October 2008"

Today's fake-believe capitalists are about to find out the meaning of true capitalism, the real kind wherein losses fall where they may, sans bailout.