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Just One Question: Do You Have ‘A Coherent Explanation For Precisely What Is Going On’?
If Sunday morning's tweets were any indication, President Stable Dennison is acutely aware of the ex
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Testing
I don’t know if this is a coherent explanation. It’s a working hypothesis – but it’s consistent with the events of last week.
Spoiler alert: no matter how cynical you are, prepare to take it to a new level:
Monday: Trump and a few select congressional leaders get the word from their bosses in the central banking cartel: We’re about to crash the market. No more propping up/plunge protection. In fact, we’re going short. So do what you need to do with your personal portfolios (i.e sell stocks, buy gold etc).
More importantly, spread the word: Get together all the spending bills you were planning to pork through the system over the next 6-12 months and push them through asap. By this time next week, the indexes will be plummeting and you’ll be in full crisis mode. The everything bubble will pop and all the leverage in the system will bring down bonds and the dollar as well.
Tuesday & Wednesday: McConnell, Pelosi, Ryan and Schumer scramble to gather all spending bills from every member of the House and Senate. Suddenly a 2,200 page $1.3T barrel of pork appears from nowhere.
Thursday: House of Representatives quickly approves the bill and forwards it to the Senate. The stock market tanks.
Friday: Senate quickly approves the bill (at 0 dark 30) and forwards it to the President. At 5:55 am, Trump tweets “I am considering a VETO of the Omnibus Spending Bill”. At 1 pm, he announces that he has signed it.
So The Donald sent a bogus message before the markets opened Friday morning to stabilize things for a few hours while he and the other swamp rats closed out any remaining holdings in their personal portfolios and repositioned for the coming crack-up. It worked. The market held steady until 2 pm and then resumed tanking.
Welcome to the new normal! Big Short v2 is here.