More Debt, More Liquidity, Higher Stocks (Hallelujah)
The COVID-19 crisis is different from Lehman for a laundry list of obvious reasons, but in some key respects it's similar.
JPMorgan sums up the situation in just seven words: "More debt, more liquidity, more asset reflation".
That, ultimately, is our future, the bank's Nikolaos Panigirtzoglou says, in a somewhat fatalistic edition of his popular "Flows & Liquidity" series.
One thing we should be clear about (and insistent upon) is that the extent to which liquidity serves primarily to i
Oh come on H, you are bringing Leonard Cohen into the fray?
Six or so years ago, I was in a bar in Manhattan, and a girl walked up to me, pointed to my Leonard shirt, and said “Is that Bruce Willis?” I said “I’m sure you’re a nice girl, but we cannot be friends”.
More debt, weaker credit structure, more asset price deflation.
We, the American people, are truly masochists when it comes to denying ourselves the things that would actually enhance our daily lives. I don’t know if it’s our Puritan heritage, the post-WWII version of American exceptionalism, or fear that some cruel higher intelligence will threaten to turn off our simulation if we were to become self-aware, but I sure hope we see the light sooner rather than later.
Our Calvinist legacy.
H.L. Menchen once defined Puritanism as: ” … the haunting fear that someone, somewhere, may be happy.”
Congress totally in the pockets of corporations
We frequently split the S&P 500 into FAAMG versus 495 other companies. It would be interesting to see a similar division of the top 1% between Bezos/Gates/other FAAMG zillionaires versus all the other merely rich. The increased wealth of the top 1% is most probably going to 1% of the 1%, making the concentration of wealth even greater than the chart above indicates.
Mo Money, Mo Problems.
I knew I had heard that somewhere before in my secret life.
In an economic foxhole we are all socialists.
Haha, indeed