Stockman’s Corner

Covid-19 and Oil-30 tell you all you need to know about today’s dangerous financial regime of central bank fueled Bubble Finance.

This has happened before, albeit way back at the beginning of time in April 2000 when today’s day traders and robo-machines were still in short pants.

After the last few days it should be pretty obvious that the whole system is haywire. Self-evidently, the Fed is a clear and present danger owing to its essential Keynesian modest operandi. That is, the inflation of massive bubbles and financial malignancies in a misguided effort to goose jobs, spending and GDP, which end up

The very future of democracy and capitalist prosperity hangs in the balance, and not simply owing to today’s 2000 Dow point bloodbath and the giant Covid-19 pin that has slammed hard upon the world’s bubble-riven financial system.

There is only one word for this morning’s financial charts: REALLY?!

We are now seeing the fetid fruits from 30-years of the Fed’s relentless coddling of Wall Street. Swings of 1,000 Dow points intra-day, day-after-day and sub-1% yields on nearly the entire Treasury curve bespeak of a financial market that is completely broken. Kaput!

In 1971 Nixon famously said “we are all Keynesians now” as he ash-canned the Bretton Woods gold exchange standard, thereby unleashing fiat central banking on the world economy.

It doesn’t get any more pathetic than this. The Fed cuts the already absurdly low money market rate by 50 basis points at 10AM and before noon th It doesn’t get any more pathetic than this. The Fed cuts the absurdly low money market rate by another 50 basis points at 10AM and before noon

The 10-year UST yield hit 1.03% this AM, and that’s downright ludicrous. After all, the core CPI inflation rate posted at 2.27% in January, meaning that the most fiscally profligate government in modern times gets to borrow long-term funds at negative 124 basis points in real terms.

The third great certainty in life these days besides the old standbys of death and taxes is that POTUS 45 does not have a single consistent bone in his body. Not one. The plunging red line on the right margin of the chart below has surely not yet finished its southward excursion, but it tells