{"id":11574,"date":"2015-08-29T07:04:10","date_gmt":"2015-08-29T12:04:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11574"},"modified":"2015-08-29T07:10:04","modified_gmt":"2015-08-29T12:10:04","slug":"but-in-come-the-cronies-to-tell-us-not-to-worry-about-it","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11574","title":{"rendered":"This Market Is a \u201cWheelbarrow of Dynamite\u201d Waiting to Blow"},"content":{"rendered":"

This Market Is a \u201cWheelbarrow of Dynamite\u201d Waiting to Blow<\/a><\/h3>\n

But in come the cronies to tell us not to worry about it.<\/strong><\/p>\n

<\/i><\/b>DELRAY BEACH, Florida \u2013 It\u2019s hot in Florida. Steamy hot. Hair curls and bodies go limp.<\/p>\n

The \u201crelief rally\u201d continued yesterday. All over the world, stocks gained. So did oil and commodities. (More on that below in today\u2019s Market Insight.) The Dow was up 369 points \u2013 a 2.3% move. Chinese stocks were up by about 5%. Why?<\/p>\n

U.S. GDP numbers for the second quarter came out higher than expected. The economy grew by an annual rate of 3.7%. And influential New York Fed chief William Dudley said the argument for a rate increase in September was \u201cless compelling.\u201d<\/p>\n

A Decline in Excess of 50%<\/strong><\/h3>\n

Oh, ye of little faith\u2026 fear not! Things are happening just as they should. It is the end of summer. Markets are giving strong hints of things to come in the fall. Like Vesuvius, a plume of smoke rises\u2026 and a cloud of dust hangs over the markets. The economic earth rumbles\u2026 and animals take flight.<\/p>\n

But in come the cronies to tell us not to worry about it.<\/p>\n

And who knows what happens next?<\/p>\n

Your editor is a fairly good plumber. He can put the pipes together and unclog the toilet. Alas, his record as a market soothsayer is spotty. He is rarely wrong, but often so early that by the time the event occurs even he has forgotten he ever predicted it.<\/p>\n

But today we are encouraged and emboldened. We swagger ahead, like a reedy poet into a rough bar, confident in the knowledge that there are giants behind us. Yes, economist and money manager John Hussman\u2019s forecast is similar to our own. From his most recent note for Hussman Fund clients:<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

This Market Is a \u201cWheelbarrow of Dynamite\u201d Waiting to Blow But in come the cronies to tell us not to worry about it. DELRAY BEACH, Florida \u2013 It\u2019s hot in Florida. Steamy hot. Hair curls and bodies go limp. The \u201crelief rally\u201d continued yesterday. All over the world, stocks gained. So did oil and commodities. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6190,1625,216,303,305,8522,1138,6118],"class_list":["post-11574","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bill-bonner","tag-cronyism","tag-dow","tag-fed","tag-federal-reserve","tag-relief-rally","tag-stock-market","tag-wolf-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11574"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11574\/revisions"}],"predecessor-version":[{"id":11577,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11574\/revisions\/11577"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}