"From the least to the greatest, all of them are greedy for unjust gains; and from prophet to priest they all deal falsely.
They have treated the suffering of my people carelessly, saying, ‘all is well’ when there is no safety. They act shamefully, they commit terrible offenses; and yet they are not ashamed, and do not even know how to blush. Therefore they shall fall among those who fall."
Jeremiah 6:13-15
"Paul turned the Emperor and said, 'When they permitted you to mount your father’s throne, it was only on the assurance that you’d keep the spice flowing. You’ve failed them, Majesty. Do you know the consequences?'”
Frank Herbert, Dune
A healthy market correction this week, as it was called by some pundits, thankful that the lack of 'market collars' and 'circuit breakers' allowed buyers and sellers to find each other without interference. It's almost romantic sounding.
This was the worst week for stocks since 2008, with the SP 500 and Nasdaq down a little over ten percent.
But it did end on a kind of an upbeat note, as the stock futures recovered today's losses and managed to go into the weekend in the green.
Several factors contributed to this.
First and foremost, the odds of a rate cut in March jumped to 96.3% today from 8.9% a week ago, we hear. I am struggling with the notion that cheaper benchmark rates are going to tempt people to ignore the coronavirus and go to the mall. But it may put a little life back into the financial asset bubble. Needs must.
The team of Kudlow and Mnuchin managed to rally the banks to smack the crap out of gold and silver, running the stops and triggering margin calls from the recently increased margin requirments on the Comex. Since the Banks were struggling with an oversized short position it certainly helped out the financial system while dampening the enthusiasm for hard assets
No slackers here, there is a two prong effort across the established powers to manage and control the narrative, while ensuring boatloads of money continue to reach 'the right kinds of people.'
The spice must flow.
And in a bipartisan celebration of better news, Joe Biden is expected to crush the opposition (Bernie) in South Carolina this weekend, an all important victory for the forces of the status quo.
In all seriousness, let's remember those who are suffering with this virus around the world, struggling to go about their business while trying to protect their livelihoods and families.
Now is a good time to prepare, if you have not already done so, and to begin engaging in those simple procedures that may help us weather this.
Have a pleasant weekend.
