It All Burns Down.
On Monday evening, in the course of documenting the surreal scene in Washington D.C., where Donald Trump discussed imposing martial law in order to quell protests and root out "terror organizers", I attempted to put the social unrest sweeping America in the broader context.
The US economy, I wrote, has all but collapsed. The unemployment rate is the highest since the Great Depression (the official update, which will accompany the May jobs report on Friday, is expected to print near 20%). 40 mil
Why don’t you also mention how they manipulate the price? For instance, 1 min prior to the announcement of unemployment number at 0829, GILD announced news and market just danced, even though two weeks later it was proven to be a false statement. Not only they artificially inflate assest price, they also don’t hide anymore, and use all nasty tatctics to burn those classic investors that pay attention to fundamentals..
Who is “they”?
“If Trump’s fervent support base ever gets on the same page politically as those with whom they share an economic destiny, America is going to be in for unrest “the likes of which nobody has ever seen before”, to employ a Trump-ism.”
That day is not today but i fervently hope that day will come. There is something ( well, many things) fundamentally wrong with our economic system, society, and pay to play government.
In my opinion, that “something fundamentally wrong” is the existence of lobbyists and unlimited corp cash contributions to politicians.
When the Congress (yes both R’s and D’s) legislates to benefit themselves and their donors and not society at large, capitalism fails.
I’m all for capitalism for the freedom, innovation, and growth it’s capable of generating. But it needs to be regulated to avoid its excesses
Very Nice article H, thanks.
So…buy on margin to catch up to the 1%? 😉
Indeed, “bitter disenfranchisement.” There was a change in the milieu, the zeitgeist, the feeling in the country over this past weekend.
We should expect to start hearing fresh, young voices from among the activists, voices who get the above charts and the ideas this post so elogquently shares. They will translate this in public speeches in a way that transcends political affiliation. This is how I think the market will be brought to account for the disconnect. Still, not sure if even then the Fed will stop growing it’s balance sheet. The Fed did their job, they stopped what was a 100% certainty of a financial crash and provided liquidity to the markets. Powell will be able to save face when the disenfranchised turn their attention.
You are imagining your “zeitgeist”. Sadly, another victim of confirmation bias.
Most of the soldiers who fought and died for the Confederacy did not own slaves –“rich man’s war poor man’s fight” and it still seems true today. I wouldn’t expect DJT’s “Low Information Voters/Supporters” to wake up to the reality that the very white men they unswervingly support are impoverishing them at a frighteningly accelerating rate. Trump’s “that migrant/minority is stealing your last dollar” screed plays. A George Wallace hit that the Trump cover version has the GOP dancing to a”Golden Oldie” that, tragically, never seems to get old.
And sickest of all: Trump is probably thrilled that the virus is off of the top line of the NY Times and WaPo and a good old race war that he thinks is a political winner for him has replaced it.
All true, and just so, so sad.
How long have you lived in your safe-space echo chamber? Once again, the Democrats downfall is that they underestimate Trump’s real support.
I do not question the breadth and depth of his supporters –the GOP has moved relentlessly towards the “American Independent Party” for decades –and not only has Trump been channeling Wallace but has mixed in a healthy dose of Curtis LeMay for good measure. The GOP has been able to drag business elites down into the gutter with them by pandering to perhaps the basic instinct of all: greed. Shredding regulations and the 2017 tax redistribution legislation just two small samples but the crowning achievement for them is the pro-business judiciary that has been empaneled for the next generation so the ever narrower band of “Haves” can concentrate wealth and burn the planet to a cinder even faster. . .
preach
Spot on, RStantz. always remember the mantra at Goldman Sachs exhorting us to be ‘long-term greedy’. It’s not a particularly difficult concept to grasp and yet the current political and business elites seem to be spectacularly incapable of getting it. Does everyone in the fraction-of-the-one-percent think they can make a quick fortune and then find their own remote island to escape from the ensuing unrest?
He is gunning for the only thing he does well, Bankruptcy. Only this time it is the entire USA.
H. Keep it up. you are recording the “fourth turning” fire – we do have it , there is no doubt – but we have to create a positive resolution. Smarten us up and tell us how to fight Bannon, Trump, and Mercer. Knowledge, empathy, and humanity are key (I date myself) – the more who see this, the better. At least you make us think and remember to do what it was that we tried to do when we entered the university and then the WORLD.
I realize that most municipalities and states are moving forward with re-opening schedules and that history tells us social unrest is not a threat to US equity markets, but not delaying the re-opening does not mean protest won’t affect how effective or fast re-starting efforts are. Are people as likely to go out and spend with or without riots taking place? If you listen to most commentators on financial media it is an irrelevant question, off course consumers will come out regardless. Call me skeptical, so now in order to go to my favorite restaurant and risk the virus I need to navigate a maze of protests and the risk of getting caught between police and rioters after curfew time?