Like the Go-Go’s song Manic Monday, it is a manic Monday for stocks. The awful jobs report from last Friday is reverberating through markets. The VIX (fear index) soared to 52.2 this morning.
MY fear is that Congress will go wild and start (mis)spending trillions of dollars again on hare-brained projects like green energy (and electric cars) when our electric grid can’t support the increase in electric cars.
US 2s/10s yield spread is now flat for the 1st time since 2022 on aggressive repricing of Fed rate cuts. US 2y yields have plunged by 70bps to 3.69% since last Wed while US 10y yields only dropped by 40bps in the same time.
Voters are head-over–heels for Kamala Harris, a dim-witted Marxist authoritarian.
Confounded Interest - Anthony B. Sanders 
(1) Marc Cohodes on X: “The same characters behave like Heroin addicts without their drugs every single time.. Begging the Fed yo bail them out.. Cant have free markets anymore. @BillAckman is crybaby numero uno” / X https://x.com/AlderLaneEggs/status/1820548514390438394
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Q: From Mr. Skin:
First little break off a bubble top, and the cry babies among Wall Street’s criminal class start screaming for the Fed to immediately start cutting rates.
Not just a quarter point, but maybe a couple of “quickie” half point cuts. These are the asset gatherers and commission rakers that populate the “Great Casino”, otherwise known as the “stock Market”. These people act like babies who have had their pacifier jerked out of their little mouths.
Of course, the entire generation of “babies” has been coddled with essentially free money year after year, so they lost contact with certain “realities” such as “nothing lasts forever” and the law of “Regression-to-the-mean”. Maybe this turns out to be “the big one” or maybe just one of those inconvenient hiccups.
In any case, the “squiggles” have been suggesting caution for quite a while. Maybe it took Warren Buffett to finally ring the bell. (“…how dare he SELL the world’s greatest investment icon…” We thought AAPL was a religious artifact to never be blasphemed”)
Fleck: And we are about to find out who has been swimming naked.
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