Pretty blatant market control by the Federal Reserve. Will be interesting to see if their market manipulation works and prevents a collapse. Their 2.3 trillion this morning reversed the futures from negative to strong positive. 2787 is a 50% retracement from the lows. If it gets as far as 2850, the bullish case takes over. Otherwise, it’s a bear trap. If it starts to fall again, the next leg down is going to be truly terrible, as this rally is all based on funny money from the Federal Reserve — it worked in 2008/9, will it work again? Earnings start on Tuesday with JPM. Not surprising the Fed sprang another 2.3 trillion this morning as unemployment went up another 6.6 million people in just a week. It’s really no long about coronavirus, as the plateaus are in for the virus — it’s about the economic devastation that it will bring now and for the next 5 months minimum. The unemployment rate may get to 20%. That’s what the Fed is reacting to.
Category: Economics and trade
Economic Recovery?
Will the Federal Reserve and the Treasury just paper over this financial crisis with tons of dollars like they did in 2008 so there is no collapse or will the collapse happen anyway? That’s the question.
Middle Class
If you lose the middle class, you lose the country.
DAX
I’m wondering if the DAX in Germany is about to collapse. The German 10 year has fallen sharply and quickly to a negative .251%, which is much worse than even the Japanese bond. And the German bank DB looks like it’s disintegrating, despite the merger plans. Would not be surprised to see a sharp collapse soon in the DAX like 1929 — when there are suddenly lots of sellers but no buyers.
Of course the entire easy money economic system in Europe is a complete fraud. A currency that pays no interest has no value. But when will someone step forward and say the emperor has no clothes? You’ve got literally mountains of debt but no growth. Sound familiar?
Socialism
You have to be a complete fool to espouse socialism. But there is no shortage of fools in this world, especially among the young and inexperienced.
Price Fixing
I’ve been situated in the same location now for some 7 years and have consistently tried to get service from Verizon for television and internet access, but to no avail. Verizon is simply not available anywhere in my area. The service that is common in my area — you see their trucks everywhere — is Comcast.
Which makes me wonder how much indirect price fixing there is between Verizon and Comcast, not in terms of making their prices more or less equal but higher than would normally be the case — your garden variety price fixing — but in terms of a covert agreement between the two giant cable companies concerning which territories each will have absolute control over because the other agrees not to offer services in that area? So now I’m paying Comcast more than twice the cost if those same services were supplied by Verizon. Obvious price gouging.
And stepping back a bit for this issue of territoriality, there’s also the issue that these same cable companies offer their services, not based on a fixed price for everyone, but based on YOUR zip code. Isn’t that also a form of price fixing? The car companies do the same thing. The price of a Toyota in Kalamazoo is different from the price in Boston, i.e., richer locations end up paying a premium. More price fixing, in my opinion.
But where is the government to look into these abuses? Nowhere to be found.
Economic Warfare
Playing hard ball with Iran over their oil exports.
Slavery
There may be as many as 40 million slaves in the world today.
Slavery happens when the local economic system cannot absorb the size of the population, i.e., the surplus population is much bigger than the number of salaried jobs. That is true in many locations around the world.
According to the link below, slaves are much cheaper today than there were at the height of American slavery in the 19th century.
France
Nightmare Scenario
A terrorist sets off a suitcase nuke in a major city somewhere in the world, and the world economy collapses. We see a Weimar-like inflation in the cost of all goods because of chronic shortages. There’s widespread starvation everywhere.
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Henry's Views 