The Stars May Have Just Aligned For Another Risk-Off Episode
At the risk of overstating the case, Tuesday served as a reminder that despite the surprising durability of the bounce in risk assets from the March lows, downside catalysts are myriad.
Most obviously, Anthony Fauci told lawmakers that reopening the economy in a haphazard fashion chances higher infection rates and more deaths.
There's little utility in recounting Fauci's every word (delivered via video conference). He said nothing we don't already know. And, indeed, that's the point. Fauci is
5/1 there were sanctions implemented by executive order banning anything made in china or russia from being purchased and installed in critical power infrastructure such as capacitors, control systems and sub stations. I do wonder if anyone examined the supply chain prior to determine if alternate sources existed such that replacement components will still be available to repair damage from summer storms or if we are at a minimum already on our way to a summer of rolling black and brown outs across the country.
The answer to that is no, alternative suppliers don’t really exist. Moreover, large components are expensive and often made to order, sometimes taking as much as two years to produce. These are the components needed by substations and many are not routinely stocked by utilities because they would form part of the firm’s asset base that is often disallowed for rate-setting purposes. Also key suppliers in Canada, another country Trump likes to insult.
Myriad,Politics certainly, the temperature is rising fast.
This was kinda fun for awhile. Surprised we made it this far into May.
The FED did their job creating stability and optimism. Politicians mostly came to bat for the USA.
But March 11 showed we were not going to get the leadership we needed to get a V shaped victory.
Rolling blackouts, if that is all, take it as a win.
We can’t help but notice lots of people are subject to cruel, violent tyranny and oppressive forms of government — absolute dictatorships, monarchies, ideological fascism, corrupt nepotistic, dynastic one-party states; or in some cases, sad, broken failed states, bereft of any government — rife with armed warlords, religious fanatics, pirates, thieves, and bandits etc.
We are so appalled by this (in the free world), that we’re going to help you!
So hold on, oppressed people of the world! The coronavirus crisis in the Navajo Nation has gotten so bad that Doctors Without Borders just sent a team to the US.
The US is now officially a failed third-world state, begging for charity.
I say it’s about time for a Pity Party in the markets, let’s give Ron Vera what his heart desires, full confrontation with China, Trump pleases his base while a market sell off forces the Fed to gift us all with NIRP and another $1,200…
We’re now less than 6 months from the Presidential election. That gives Trump +/-5 months to lock in enough minds in certain key states that he should be voted in to remain as President. With his number one argument/message (“highest stock market ever”, “strongest economy ever”) no longer viable, he needs another. I expect he’ll abandon the stock market (for the next 6 months) and make his re-election platform all about “making China pay” (regardless of what China may do in response). And while it won’t matter with respect to his re-election, there will be a lot of other countries cheering him on (eg. Australia, Britain, Italy, etc.).
Maybe, but his “genius” son-in-law says fall election not a sure thing.
Trump’s decision making is so inexplicable to me.
If you were he, wouldn’t you figure your best bet is to buy votes with trillions of dollars of aid mainlined directly to voters? Meanwhile keep them home, glued to FOX, raging about the evil Chinese and China-loving Biden, and dependent on your largess?
On another note, I think all the video of Trump praising Xi is not going to be real helpful to him.