No Company is Too Small to Fail
Pending Mortgage Applications Might Not Be What They Seem
About Half the US Population is Jobless
Silent Minority Accumulating Physical Gold
Simple Reason There Will Not Be a V-Shaped Recovery
The Fed CARES
Fed Especially Likes Automakers and Technology
Reflections on Fed Leverage
Muni Buying – Illinois is Special
Starbucks Bails on Facebook Ads
It Takes a While for Deaths to Show Up in Stats
No Escape for Gold Shorts
For discussion of gold shorts, please see More Gold Hype: No Escape for Shorts
12 Ideas From 7 People
- Danielle DiMartino Booth
- Jim Bianco
- Lance Roberts
- John Hussman
- Gold Telegraph
- Lisa Abramowicz
- Me
Moral Hazard on Steroids
DiMartino Booth get the idea of the day award: No Company is Too Small to Fail.
In context, she means, No Company is Too Small for the Fed to Bail.
There is no price discovery as a result. Instead, we have moral hazard on steroids.
Mish
“Consumers must work in order to Produce first”
Seems like a non-brainer, until you realize half the population not working actually does not reduce the availability of production goods noticeably.
“They get paid for that work”
Well yes, but not in the sense that your work generates the means to survive … a huge number of those that work are supplementing the avenues they resort to to put a roof over their heads and food on the table.
What about Chesapeake, Hertz, JCPenney…..to name just a few rather big ones???
Criticizing the Fed useless when Silicon Valley is in charge of what people think and therefore their spending/saving/investing patterns. You’ll never catch White Flight Mish criticizing Google because his income depends on it.
“DiMartino Booth get the idea of the day award: No Company is Too Small to Fail.”
…
Hogwash.
Just another poor soul who believes the hype of omnipotent Federal Reserve. Federal Reserve a lot of bark and some bark. Got to run so just consider this.
Current balance sheet of Federal Reserve just north of $7 trillion (actually shrank past 2 weeks). Domestic stock market value ~ $35 trillion. Total debt all sectors US ~ $77 trillion. I’m a believer that FR balance sheet will easily balloon at least to $10 trillion to $15 trillion. But that is far cry from $110+ trillion needed to “buy it all”. At SOME point losses will prevail. And holders of similar garbage will have the “uh oh” moment when they realize FR will not come to their rescue.
As Tim Geithner said last go re all the Treasury (and Federal Reserve) machinations were just “to foam the runway” for the crash landing.
First off I don’t think she stated what she meant properly. As it stands, what she said makes no sense. No company is too small to fail = All companies are large enough to fail.
I’m pretty sure she meant no company was too small and no balance sheet too bad for the Fed to not try to save it. It’s a bit of hyperbole but she is essentially saying the Fed’s actions are showing her the Fed will go to any extreme to prevent failure, not that the Fed is omnipotent and will prevent it.
Her statements should not be read so literally. She is an ex-Fed insider and no fan of what they are doing.
The Fed won’t “buy it all.” But it will provide enough of what the idiots have been told to starry eyed refer to as “liquidity,” to allow the banks and banksters who own it all, to keep pretending it’s all still money good. Until we “have a recovery” and all…..
The idiots who own and run everything, depend on maintaining the illusion that things are still largely the same. That $300K shacks in Pac Heights have somehow created $20mill in value by sitting there decaying. That dragging people more competent than you into kangaroo court to play courtroom drama, somehow creates wealth. That living large off of money sent in by people believing they are saving for their pension, somehow results in more savings than not doing so… Etc., etc. Since this is what, and all, that the Fed facilitated Free Shit Army idiots’ “net worth” and “collateral” is backed by.
So the Fed’s goal is to prevent change. Scleroticize everything. Make sure noone sufficienttly competent to create an alternative which works better in a Covid stricken world, has sufficient resources to effectuate any such change and improvement. Since him doing so, would “decrease the value” of the junk which hardly works at all, but is all of which ownership of, the incompetent idiots who own and control all of America’s wealth and status is built on.
$10T balance sheet (shit?) leveraged 10x has $100T buying power. Isn’t it?
“In context, she means, No Company is Too Small for the Fed to Bail.”
Yup! But then the rider is which company will be the last straw on the camel’s back. even the almighty Fed WILL NOT BE ABLE TO bail out everybody and at some point WILL GIVE UP on the idea. Can you imagine what will happen then and then for a period of time. This could well be the Fed’s last hooray.
IMHO, the Fed has met more than its match in King Corona.
The FED ain’t buying. It’s delegated all action to BlackRock.
We are in the early innings. The losses WILL come.
Trust me.
Zero Hedge: “41% Of Business Closures On Yelp Have Permanently Closed As V-Shaped Recovery Implodes”
ZH mentioned just a while ago that Cirque Du Soleil filed for bankruptcy.
Why Changing COVID-19 Demographics in the US Make Death Trends Harder to Understand https://covidtracking.com/blog/why-changing-covid-19-demographics-in-the-us-make-death-trends-harder-to AND if you want reliable vaccine info/updates go here: https://blogs.sciencemag.org/pipeline/archives/2020/06/29/coronavirus-vaccine-update-june-29
Oh Fiddley Dee everything is just sugar move on: Dow surges thanks to Boeing and strong home sales
The Fed has become a rogue institution and is now a clear and present danger to the vast majority of people in this country.
More accurately:
All central banks, at all times, have been nothing more than rogue institutions. Clear and present dangers to the vast majority of the people of every country. And always and everywhere, to an ever vaster majority of the people as well.
And not just all central banks: All possible central banks.
Disagree: The fed has NOT become rouge…
When have you not been bullish on Gold?
Indeed, Mish has been usually bullish on gold for the past 15 years or so. Was he wrong when using 10 years investment window, let’s say?
There is always a window that fits everyone’s prediction.