"The government can always rescue the markets or interfere with contract law whenever it deems convenient with little or no apparent cost. Investors believe this now and, worse still, the government believes it as well.
We are probably doomed to a lasting legacy of government tampering with financial markets and the economy, which is likely to create the mother of all moral hazards."
Seth Klarman
The US stock futures markets had slumped badly in the overnight session due to the escalating 'trade war' with China.
And as you can see, stocks made a dramatic turnaround and finished markedly higher on the day.
Silver was off a bit and gold closed virtually unchanged after having rallied in a flight to safety in the early morning.
Are we not exceptional? Are you not entertained?
Have a pleasant evening.
