We can debate whether this Depression is worse than 1929. You know it's a Depression from the moment Powell calls it a Recession.
Almost four million Americans newly unemployed. Then what about this tidbit: how we've fallen faster to this point than they did in 1929.
This is a cyclical bear market with false positives known as rallies. We're in a three-day rally and that should promote panic -- instead it engenders a false sense of security and a rallying mentality. Just nuts.
Remember that in the Great Depression, over four years we had FIVE false-positives, or if you prefer, bear-market rallies.
This three-day wonder is one of those. Why? Because the Fed has moved on from only buying every bond and debt asset class to also buying ETFs and stocks. Guess who was likely the only one buying that Boeing stock today, when the price doubled?
There's no intelligence on Wall Street, only a deluded herd mentality. They are actually stupid enough to bid up this market based solely on Fed panic. In other words, buying up Treasuries and debt instruments was an unmitigated disaster, so let's try this!
The greed-driven stock market screams we're out of the bear, based on a narrow technical definition, while the bond market sees the Titanic iceberg on the horizon.
Well, guess what? The bond market is ten times as large as the stock market and it's telegraphing negative T-bill rates across the board. Now, who should you believe?
Add to that the Fed claming up on the amount of nightly Bank Repo injections and you should get the picture pretty fast. Is that now classified?
It's a tale of two stock markets: the Ponzi buy-back inflated traditional stocks versus gold and silver stocks. Guess which one I'm betting on?
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