Following April NFP, May/3, and that day’s debt sell off, our advice was to look to own US debt (after the dust settled) as we predicted that key releases just ahead would disappoint. We also predicted that Fed commentary just ahead would not support the view for an early withdrawal. Holy cow folks! Pickett’s charge comes to mind; we feel Lee’s pain just after.
But then we should have known better – the rules have changed. This is crazy-making; it is nonsense – the worse the economy looks for example, or may look, the better equities perform. Witness this headline in today’s financial press – “US stocks advance on stimulus bets ahead of payroll report….,” the story elaborating on what may be a weak report and extended Fed generosity.
Or is it “generosity” at all? By misdirecting resources; that is, by individuals directing resources at their whim, a rotten under-core begins to form in any economy once anchored by a rule-of-conduct.
A freely functioning auction market has been replaced by a government sponsored institution. Blockages form and eruptions result. That is market violence – great for some street types but corrosive for the rest of us.
This is child’s play but the kids are armed and dangerous.
Robert Craven
But then we should have known better – the rules have changed. This is crazy-making; it is nonsense – the worse the economy looks for example, or may look, the better equities perform. Witness this headline in today’s financial press – “US stocks advance on stimulus bets ahead of payroll report….,” the story elaborating on what may be a weak report and extended Fed generosity.
Or is it “generosity” at all? By misdirecting resources; that is, by individuals directing resources at their whim, a rotten under-core begins to form in any economy once anchored by a rule-of-conduct.
A freely functioning auction market has been replaced by a government sponsored institution. Blockages form and eruptions result. That is market violence – great for some street types but corrosive for the rest of us.
This is child’s play but the kids are armed and dangerous.
Robert Craven
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