Stocks and Precious Metals Charts - A Gathering of Vultures

 

"The historical evidence is overwhelming.  Many societies have done well for a while – until powerful people get out of hand.  This is an easy pattern to see at a distance and in other cultures.   It is typically much harder to recognize when your own society now has an elite less subject to effective constraints and more able to exert power in an abusive fashion.   And given the long history of strong institutions in the United States, it appears particularly difficult for some people to acknowledge that we have serious governance issues that need to be addressed.

We had strong institutions for a long time in this country — including effective checks on the power of bankers.  Many people remember that history and still hold its image in their mind’s eye as they look at modern Wall Street.  It’s time to wake up.  In recent decades we abandoned the governance mechanisms that previously served us well.  Global megabanks have obtained excessive and inappropriate power – the power to take a great deal of risk, with cash for their executives on the upside and huge damage for the rest of us on the downside."

Simon Johnson, Jamie Dimon and the Fall of Nations, May 31,2012

"Give strength to the hands that are tired
      and to knees that tremble with weakness.
Tell all who are discouraged,
      'Be strong. Do not be afraid.
      God is coming to your rescue,
      coming to chastise the oppressor.'”

Isaiah 35:3-4

"For they sanctify the power of markets in the name of economic efficiency, which requires the elimination of administrative or political barriers capable of inconveniencing the owners of capital in their individual quest for the maximisation of individual profit, which has been turned into a model of rationality.  And they preach the subordination of nation-states to the requirements of economic freedom for the masters of the economy, with the suppression of any regulation of any market, beginning with the labour market, the prohibition of deficits and inflation, the general privatisation of public services, and the reduction of public and social expenses."

Pierre Bourdieu, L’essence du néolibéralisme

"Until this moment I think I never gauged the cruelty or recklessness of some conservative economists, politicians and their masters. They have created a wreckage of financial devices and led us on the edge of a societal precipice.  Have they not done enough?  Have they no sense of decency left at long last?

Must they now attempt to define the poor as those who by their nature prefer cheap and shoddy goods, and a lower standard of life, and who are therefore are separate but equal with the wealthy who are genetically compelled (entitled?) to require the finer things in life?  The words of Robert Welch to lowlifes like McCarthy and Cohn still fit after all these years, to those lacking the basic integrity of the schoolyard, who thrive on and generate conflict, and who will say or do almost anything in their pursuit of the will to power."

Jesse, Economists Discover 'Separate But Equal', 20 May 2008

"They asked, 'Where will this happen, Lord?' And Jesus said, 'Where death is, there a gathering of vultures will be.'”

Luke 17:37


Stocks managed to bounce back today after last week's rough declines.

Gold and silver were higher.

The Dollar was higher.

VIX fell.

The news to watch this week will be the CPI on Wednesday, and the PPI on Thursday.

There seems to be a consensus that the Fed will be making their 'pivot' official, and offer up a rate cut at their next meeting this month.

The debate is whether it will be 25 or 50 bp.

If it is 50 I would expect it to be due to the proximity of the Presidential election, so they will cut big once and then stand aside until after that event.

But let's see what happens.

Have a pleasant evening.