Inequality is about the way in which speculators, and even criminals, get a helping hand from Uncle Sam, while the Vietnam Vet down the street from you loses his house. Inequality is the reason that some people find such incredible significance in the ceiling height of an entrance foyer, or the hop content of a beer, while other people will never believe in anything again.
This is what a society looks like when the glue that holds it together starts to dissolve. This is the way ordinary citizens react when they learn that the structure beneath them is crumbling. And this is the thrill that pulses through the veins of the well-to-do when they discover that there is no longer any limit on their power to accumulate."
Thomas Frank
"There is a lack of critical assessment of the past. But you have to understand that the current ruling elite is actually the old ruling elite. So they are incapable of a self-critical approach to the past."
Ryszard Kapuscinski
"Major commercial and investment banks—and the hedge funds that ran alongside them—were the big beneficiaries of the twin housing and equity-market bubbles of this decade, their profits fed by an ever-increasing volume of transactions founded on a relatively small base of actual physical assets. Our future could be one in which continued tumult feeds the looting of the financial system, and we talk more and more about exactly how our oligarchs became bandits and how the economy just can’t seem to get into gear. Recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time."
Simon Johnson, The Quiet Coup, May 2009
Fed Chairman Powell did not meet the expectations of Wall Street in his speech and remarks today.
It is hard to imagine what he could have said to please them that would have been even mildly credible..
And so in a reset of interest rate, easy money thinking, nearly everything got sold.
Stocks took a breath-taking dive.
They managed to finish on the charts where they needed to finish.
It took on the characteristics of a liquidity event.
Gold miners seemed to fare a little better than silver miners, but most were sold.
I made money today in my trading account, despite some truly awesome and sudden swings in value during the day, up and down.
I did take down my stock index short positions today.
Let's see how the Non-Farm Payrolls report comes out tomorrow.
Have a pleasant evening.
