The Wall Street algos, day-traders and perma-bulls surely have a death wish. The were essentially told in only thinly veiled terms during the last 24 hours that Senator Elizabeth Warren is going to be the Dem nominee, and maybe even the next president.
Yet if that’s not a blaring siren call that would make even CNBC’s reining clown-show host, Jim Cramer, envious as he bashes away every night at his buzzers, bells, bullhorns and guillotines, we don’t know what would be.
After all, it’s not just her championing of medicare-for-all, the green new deal, cancellation of student debt and numerous other varieties of free stuff for practically everyone that might be somewhat problematic for today’s Everything Bubble.
What should actually generate a cold sweat down in the canyons of Wall Street is her nasty little wealth tax plan, rollback of the Trump corporate tax cut, draconian financial regulatory schemes, proposed revival of Glass-Steagall and, most especially, her affinity for MMT—a monetary doctrine so whacko that it makes you want to pray for the return of Ben Bernanke.
Stated differently, a Warren presidency would blow Wall Street’s bubble-ridden, rent-riddled gambling casinos sky-high. Yet the robo-traders spent all day hugging the 20-DMA aiming to get back where they were on, well, the ancient times of July 22, 2019.
Indeed, the two months worth of trading represented by the blue line in the chart contains no honest price discovery content at all—just the thrashing about of the chart-monkeys and headline-reading algos.
The presumption in the casino is that the Fed and other central banks will never allow the stock averages to drop by any appreciable or sustained amount.
So why not buy the (mini-)dips and swing-trade among the DMAs, Fibonacci points, trend lines and other technical exotica—all of which are wholly interior to the market charts and oblivious to the real world.
That’s also why we use the term “ancient times” purposefully. It is self-evident that the concept of time itself has been abolished on Wall Street under the spell of today’s rotten central banking regime. If “time” still existed, for example, no one would buy subzero bonds–let along $17 trillion worth at the recent peak—and not merely owing to the negative yield of it.
Virtually all the subzero sovereigns and corporates trading in their trillions today actually do have a positive signed coupon—meaning that the are trading at a hefty premium to par (hence the negative current yield) and face inexorable price decay over the remaining time to their redemption date.
So why would any sane investor buy these financial meltdown devices?
The answer, of course, is that investors don’t; speculators do—even in the bond markets, where they are buying them for (very) short-term price gains without regard to the march of time or possibility that financial asset prices will ever stop rising.
So in the instance at hand, it is obvious that the Fed’s cozy price-keeping cocoon has screened out the approximate 400 days until the election and even the remotest risk that American democracy could actually deliver a mortal blow to the hideously inflated financial asset values and unspeakable windfalls that have accrued to the top 1% and 10% of households, which own 40% and 85% of the financial assets, respectively.
But American democracy has not been completely euthanized. It has already put an overwhelming majority of Dem lunatics and Trump derangement syndrome sufferers in the U.S. House, who, in turn, threw Uncle Joe Biden under the bus yesterday afternoon.
So just look at the polls. Bernie has got his ceiling of 10%, the other ciphers get a couple of points each and the rest was being split between Biden and Warren–who was already coming up fast and actually ahead in many polls of early primary states like Iowa and New Hampshire.
But when it comes to Biden’s suddenly schedule appointment with the bus and the road beneath, you only need trust your lying eyes and lying ears. That is, he’s already flat-out confessed to whacking the Ukrainians with a $1 billion loan cancellation threat unless they fired the prosecutor who was going after the corrupt doings of his son, Hunter.
So by opening up an impeachment investigation featuring front and center the Donald’s harmless call with the new Ukrainian President—a nothing burger even stupider than RussiaGate—the house Dems have destroyed what remained of Biden’s faltering candidacy.
Indeed, they have guaranteed that the GOP oppo-research machine–along with its auxiliaries at Fox News, talk radio and the conservative blogosphere–will move heaven and earth to uncover every morsel of the plentitude of dirt and corruption that literally cakes Uncle Joe’s ne’er do well son from head-to-toe.
For want of doubt, here is the transcript and video clip of Biden’s boastful appearance before the Council on Foreign Relations in 2012. He literally confessed he used the powers of the Vice-Presidency and US aid to a foreign supplicant to shield Hunter Biden from an on-going investigation by Ukraine’s chief prosecutor:
The bragging by Mr. Biden to which Mr. Trump was referring was about the state prosecutor looking into, among other things, Hunter Biden. The bragging happened at the Council on Foreign Relations in January 2018. The former vice president was on a stage with CFR’s president, Richard Haass. The video of it is on Youtube.com. Mr. Biden is talking one of his visits to Kiev.
“I was supposed to announce that there was another billion-dollar loan guarantee,” Mr. Biden said.
“I had gotten,” he added, “a commitment from [President] Poroshenko and from [Prime Minister] Yatsenyuk that they would take action against the state prosecutor. And they didn’t. So they said they had — they were walking out to a press conference. I said, nah, I’m not going to — or, we’re not going to give you the billion dollars. They said, ‘you have no authority. You’re not the president.’”
“The president said — I said, call him,” Mr. Biden replied, evoking, the CFR transcript notes, laughter.
“I said, ‘I’m telling you, you’re not getting the billion dollars.’ I said, ‘You’re not getting the billion. I’m going to be leaving here in,’ I think it was about six hours. I looked at them and said: ‘I’m leaving in six hours. If the prosecutor is not fired, you’re not getting the money.’ Well, son of a bitch. [Laughter.] He got fired.
As we told Yahoo News this afternoon, we are not sure of much these days but the impending political demise of Joe Biden is fast becoming a red letter exception.
Once he’s gone, it will be Elizabeth and the Lilliputians—and the latter will soon be competing for the VEEP, not the Oval.
So the question at hand is: Can you say panic?
We have the distinct feeling that this long forgotten part of the historic financial vocabulary is about to be rediscovered by Wall Street in a very big way, as we elaborate in the clip below: