life inside the bubble
Observations and opinions. My opinion and $1 (it was 50 cents but I've adjusted for inflation) will get you a cup of really bad coffee.
Tuesday, December 31, 2024
Wednesday, December 18, 2024
Meanwhile, at Clown World Central Command
It's a beautiful building. Too bad so many terrible plans have been hatched there.
Truthfully, I do not envy the Fed's position at this point. No matter what they do, someone is going to shit the bed. They came out with a quarter point cut today. In the commentary, they mentioned that there should be no expectations of many more further cuts. The stock market had the typical hissy fit over that statement and many share prices dumped. (my opinion: they were over valued in the first place and should dump no matter what the Fed did)
In the meanwhile, inflation is back. I think that all of these "Masters of the Universe" should step back and remind themselves that a large number of their fellow Great Americans are not connected to the stock market in any meaningful way. They do not have 401k's. They do not own a Vanguard account. They do not know what "Blackrock" is and they do not have a Fidelity fund.
They do repair your toilets, cut your grass, mop your floors, stock your shelves, babysit your children, etc. usually for nominal wages. My prediction is that they are at some point going to tire of living in the Clown World created for them by the market manipulators and interest rate setters and the go-getters and the jet-setters. Who knows what they're capable of once they figure out who's been exploiting them just so that a small number of beautiful people can buy a second private jet or a beachfront compound in the Hamptons.
For your old Uncle Kenny, watching paint dry (a.k.a. Treasury yields) was a lot of fun today. The long bonds are showing signs of life and the yield curve is steepening nicely. Keep up the great work Fed and good luck with all of that "transitory" inflation. Bwahahahahaha!
Sunday, December 1, 2024
Monday, November 11, 2024
Wednesday, October 30, 2024
Yield - It's The Yield Stupid
Noun
Sunday, October 20, 2024
When "Savings" Are Artificial
"Great Americans" were flush with savings for a brief and shining moment thanks to Uncle Sam and The Federal Reserve. It was the best of times, it was the worst of times. Everyone was King (or Queen) of Turd Mountain.
They leveraged those "stimmy checks", PPP loans and mortgage payments / student loan payments that were not required to be paid due to "Covid moratoriums" up to the moon. They told their landlords to "go pound sand" and used their would be housing funds to make a down payment on a Hellcat thanks to a clueless and feckless government dictate that clearly contradicted contract law.
Our government is a spendthrift harpy and her spouse (The Federal Reserve) is an effeminate cuck who knows no boundaries and has no balls.
Well, your Old Uncle Kenny is here to piss on your parade. The juice is gone - embrace the suck and cough up the interest payments.
Saturday, October 19, 2024
So Perplexing
Cares Act, PPP loans, "Stimmies", American Inflation Reduction Act, etc. all would have been bad enough for creating inflation. When you artificially inflate the supply of money available in an economy, the price of goods goes up and stays up. Sometimes for a very long time.
It would be bad enough if this was an honest country. Our reality is that our society is flush with grifters, cheats, illegals, frauds, "influencers", bullshit artists, etc. Our society is so full of ass clowns that all of those "Covid 19 bullshit feel good programs" became leveraged. How many of the idiot class took their forgiven PPP loan proceeds or "Stimmy Checks" and used it as a down payment for a loan to buy a second house or an expensive boat, car or R.V.? A loan that they are now having difficulty in repaying.
We are truly a stupid and corrupt country. We do not deserve to have the reserve currency of the world. The bond market is calling bullshit (as it should).
We should be asking ourselves how we can go about restoring the faith in our currency and not just "throwing temper tantrums" and making threats when countries dare to seek out an alternative (a.k.a. B.R.I.C.S.).
"Bloomberg) -- The US debt interest-cost burden climbed to the highest since the 1990s in the financial year that’s just ended, escalating the risk that fiscal worries limit the policy options for the next administration in Washington."