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Stupid is as Stupid Does!

Posted June 12, 2020 By David Haggith

There is no easy way to say it, except to get it out of the way. My stock trade that I divulged as a matter of disclosure at the start of the week was probably the stupidest move I’ve made since starting this blog. I failed to follow my own advice.

The first graph gives you a glimpse of the “huge jobs rebound” that shocked the stock market into spurting past its 200 DMA barriers because retail investors and algos aren’t looking past the headlines. The second graph below shows you what a tiny difference that made to the total number of jobs that were lost:

I Believe in the Stupidity of the Stock Market

Posted June 8, 2020 By David Haggith

I believe in it in the sense that I believe it will stupidly become even stupider for a short time. So, I’m putting money back into stocks in order to bet on stupid, not because I believe in a phantom V-shaped recovery, but because I constantly hear plenty of people do believe in the “V.”

June 19, 1970: a member of the Black Panther Party holding a banner for the Revolutionary People's Constitutional Convention in front of the Lincoln Memorial. | Source: SHalloran, Thomas J., photographer.; Leffler, Warren K., photographer. For US News and World Report. / Public domain

As US troops surround the Lincoln Memorial to protect it from vandals, one is reminded of the Civil War, over which this guarded stone president once presided. Those desecrating US memorials to leaders who helped Blacks in American society may be nothing more than rioting opportunists during the George Floyd protests. They may have nothing […]

George Floyd murder - execution by cop

Even the police are breaking the longstanding blue wall of silence. Because of one vigilant citizen, these cops may go to prison: I hope they do. I find it heartbreaking to see people so hated because of their color that officials can kill them in broad daylight as if they are just a bug on […]

The Walking Fed Creates a Zombie Horde

Posted May 28, 2020 By David Haggith
Zombie economists bring on US 2016 recession. (Photo by Charlie Llewellin (Flickr: Occupy Austin) [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons)

In the The Walking Dead a virus creates a zombie apocalypse on earth. In reality, the Federal Reserve is working with a global virus to create a plague of zombie companies that do not produce revenue capable of sustaining themselves. By definition, they cannot even pay the interest on their bloating debt.

Inverted bond yields a sign of things to come from things gone bye?

Bank of America says it is dangerous to ignore the stock market, but a longer tradition says the bond market is the wiser of the two, and it is dangerous to ignore the bond market. Bank of America dreams corporate cash could roll into stocks.

The Fed is Dead!

Posted May 19, 2020 By David Haggith

The last few months reveal how dramatic failure of the Fed looks now that it has hit the wall of diminishing returns. I’ve warned for years that the next recession would look just like what we are now seeing. I’ll show below why this graph shows in stark numeric terms just how bad it is.

By Agnico-Eagle (Agnico-Eagle Mines Limited) [CC0], via Wikimedia Commons

Bill Gates, a plague and central banks have converged like the perfect storm to propel the US toward becoming a cashless society and toward using digital ID’s for all personal financial transactions. The coronavirus bound these forces together, compounded them with fear to overcome inertia, and is accelerating society down the digital-currency highway.

Plane made of burning dollar bills symbolizes price inflation and the Fed moving to digital currency

Many people are warming up to the idea of digital currency in a cashless society due to coronavirus because going touch free is cleaner than cash. Many businesses are already moving to make digital currency the only form of transaction they will engage in so their customers and their employees feel safe.

The Dow Jones (DJIA) last week ignored the worst US jobs report in history as if it were of no concern because investors hope the coronavirus crisis is here on a short-term stay. Some argue in the market’s defense that the Dow has already discounted bad jobs reports. I say investors have not even begun […]

Mark Hirschey / CC BY-SA (https://creativecommons.org/licenses/by-sa/2.0)

But it didn’t. Many thought, as did I, Warren Buffett likely set up the next leg down in this ongoing stock market crash. At the Berkshire Hathaway 2020 annual meeting, Buffett admitted that even oracles make big mistakes.

Bill Gates has dollar signs in his eyes as he envisions a cashless society

This may be my most important article to date. Bill Gates went viral in several controversial interviews last month, advocating mandatory digital ID as proof of coronavirus vaccination as soon as a vaccine is available. The proof will be required, if Gates has his way, before anyone is allowed in large public gatherings.

Unemployment line during the Great Depression

The longer US unemployment rises due to our response to coronavirus, the greater our depression, whether mental or economic, even to the point of another Great Depression. Suicides increased during the Great Depression. Suicide mortality peaked with unemployment, in the most recessionary years. The great despair of the Great Depression and increased suicide rates were due […]