Mules usually need a hardwood 2X4 twixt the eyes before they know they’ve been warned. So it can be well and truly said that today’s stock market is dumber than a mule.
In fact, yesterday’s report on the $779 billion and 4% of GDP Federal deficit for FY 2018 was the fiscal equivalent of a giant redwood beam whacking the punters squarely upside the head. Even one moment of thought and a tiny peek under the headline number should have been enough to send real money investors scrambling for the “sell” key this AM.
That’s because yesterday’s report testified to the greatest eruption of fiscal profligacy in American history. There is now literally no stopping an impending monumental Yield Shock which will lay waste to the hideous financial bubbles strewn throughout the warp and woof of the financial system—-dangerous, unstable excesses which the Fed and other central banks have fostered during the past several decades of rampant money-pumping.