{"id":52362,"date":"2020-04-10T07:59:18","date_gmt":"2020-04-10T12:59:18","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52362"},"modified":"2020-04-10T07:59:25","modified_gmt":"2020-04-10T12:59:25","slug":"wall-street-has-now-morphed-into-a-full-blown-soviet-sausage-factory","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52362","title":{"rendered":"Wall Street Has Now Morphed Into A Full Blown Soviet Sausage Factory"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/global-macro-monitor.com\/2020\/04\/09\/wall-street-has-now-morphed-into-a-full-blown-soviet-sausage-factory\/\">Wall Street Has Now Morphed Into A Full Blown Soviet Sausage&nbsp;Factory<\/a><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To paraphrase the police officer who told me my old neighborhood had burned down during the 2017 NorCal fires,&nbsp; \u201cthe markets are no more.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After the Fed announced it is bailing out junk bonds today,&nbsp; Wall Street has now morphed into a full-blown&nbsp; \u201c<strong>Soviet Sausage Factory.<\/strong>\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jay Powell probably had no choice and needed to blunt the blow of another 6 million-plus print of new unemployment claims but isn\u2019t Socialism and state intervention dandy?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We can understand providing support to local and state municipalities,&nbsp; now strapped with severe cash flow problems as their tax revenues have gone to near zero,&nbsp; but junk?<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/macromon.files.wordpress.com\/2020\/04\/employment.png?w=640\" alt=\"Employment\" class=\"wp-image-62065\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">You know, like many of the same companies that levered up to buy back shares while shitting all over their employees or, say, the wildcat and shale-oil drillers?&nbsp; &nbsp;Even&nbsp;<a href=\"https:\/\/www.latimes.com\/entertainment\/tv\/showtracker\/la-et-st-donna-douglas-dies-beverly-hillbillies-20150102-story.html\" target=\"_blank\" rel=\"noreferrer noopener\">Jed Clampett and Ellie May<\/a>&nbsp;understood&nbsp;<a href=\"http:\/\/onlineslangdictionary.com\/meaning-definition-of\/texas-tea\" target=\"_blank\" rel=\"noreferrer noopener\">Texas Tea<\/a>&nbsp;is risky business.&nbsp; Come on, man.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chapter 11 and debt restructurings are not only the right thing to do but the only thing to do lest we lose an entire generation to stagflation and a zombie economy.&nbsp; That\u2019s probably the best case unless the economy miraculously snaps back, which assumes the economy was structurally sound before the virus took it out.&nbsp; &nbsp;<a href=\"https:\/\/global-macro-monitor.com\/2017\/07\/19\/the-new-supply-side-economics-fueling-asset-bubbles\/\" target=\"_blank\" rel=\"noreferrer noopener\">We seriously doubt that<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s to hoping the bailouts are just a bridge to a major economic restructuring with the long-needed structural reforms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Waste Of Time<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s no sense in wasting time analyzing the markets anymore.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We will sit on cash and\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/global-macro-monitor.com\/2020\/03\/24\/got-gold-get-some\/\" target=\"_blank\">gold<\/a>, hope and pray the virus soon passes, and try and tune out this shit show until the major political dislocation that is surely coming on the other side.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street Has Now Morphed Into A Full Blown Soviet Sausage&nbsp;Factory To paraphrase the police officer who told me my old neighborhood had burned down during the 2017 NorCal fires,&nbsp; \u201cthe markets are no more.\u201d After the Fed announced it is bailing out junk bonds today,&nbsp; Wall Street has now morphed into a full-blown&nbsp; \u201cSoviet [&hellip;]<\/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":[124,7783,1849,15450,742,860],"class_list":["post-52362","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-credit-expansion","tag-financial-markets","tag-global-macro-monitor","tag-soviet-union","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52362","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=52362"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52362\/revisions"}],"predecessor-version":[{"id":52363,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52362\/revisions\/52363"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}