{"id":41673,"date":"2018-12-15T08:03:38","date_gmt":"2018-12-15T13:03:38","guid":{"rendered":"https:\/\/olduvai.ca\/?p=41673"},"modified":"2018-12-15T08:03:48","modified_gmt":"2018-12-15T13:03:48","slug":"how-faux-capitalism-works-in-america","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=41673","title":{"rendered":"How Faux Capitalism Works in America"},"content":{"rendered":"
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How Faux Capitalism Works in America<\/a><\/h3>\n

Stars in the Night Sky<\/strong><\/p>\n

The U.S. stock market\u2019s recent zigs and zags have provoked much squawking and screeching.\u00a0 Wall Street pros, private money managers, and Millennial index fund enthusiasts all find themselves on the wrong side of the market\u2019s swift movements.\u00a0 Even the best and brightest can\u2019t escape President Trump\u2019s tweet precipitated short squeezes.<\/p>\n

\"\"<\/a>The Donald mercilessly hits the shorts with a well-timed tweet. But as it turns out, this market is in a really bad mood at the moment. [PT]<\/p>\n

The short-term significance of the DJIA\u2019s 8 percent decline since early-October is uncertain.\u00a0 For all we know, stocks could run up through the end of the year.\u00a0 Stranger things have happened.<\/p>\n

What is also uncertain is the nature of this purge: Is this another soft decline like that of mid-2015 to early-2016, when the DJIA fell 12 percent before quickly resuming its uptrend?\u00a0 Or is this the start of a brutal bear market \u2013 the kind that wipes out portfolios and blows up investment funds?<\/p>\n

The stars in the night sky tell us this is the latter.\u00a0 For example, when peering out into the night sky even the most untrained eye can identify the three ominous stars that are lining up with mechanical precision.<\/p>\n

These stars include a stock market top, followed by a\u00a0monster corporate debt buildup<\/a>, and a fading economy.\u00a0 In short, the stock market\u2019s latest break is presaging a corporate credit crisis and global recession.<\/p>\n

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\"\"<\/a>BofA\/Merrill Lynch US high yield Master II Index yield \u2013 this looks like a quite convincing breakout, impossible to tweet down. In other words, the corporate debt build-up is beginning to bite back \u2013 and rather bigly, if we may say so (ed note, in case you\u2019re wondering: the little poems are from a Spectator competition in which people used phrases from actual tweets to put together Donald haikus and poems). [PT]<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

How Faux Capitalism Works in America Stars in the Night Sky The U.S. stock market\u2019s recent zigs and zags have provoked much squawking and screeching.\u00a0 Wall Street pros, private money managers, and Millennial index fund enthusiasts all find themselves on the wrong side of the market\u2019s swift movements.\u00a0 Even the best and brightest can\u2019t escape […]<\/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":[5728,111,195,23501,1849,380,23502,11763,827,860],"class_list":["post-41673","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-capitalism","tag-debt","tag-faux-capitalism","tag-financial-markets","tag-government-debt","tag-government-deficit","tag-mn-gordon","tag-united-states","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41673","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=41673"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41673\/revisions"}],"predecessor-version":[{"id":41674,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41673\/revisions\/41674"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}