When it comes to the world of power, money and finance colloquially known as “Wall Street,” I’m often reminded of a line from the late, great comedian George Carlin “It’s a big club – and you’re not in it!” It’s been and remains that way to this day.
However, with that said, that “club” has morphed from its original grand vision for being the greatest purveyor for the formation of capital to do great things into a charlatan’s palace for huckster enabled rackets so perverse, a den of thieves feels like a safe house in comparison. Some even have their own prime-time shows complete with bells, buzzers and whistles, literally.
This circus show known as the “markets” and their so-called “smart crowd” paraded across the mainstream business/financial media make true circuses like P.T. Barnum’s and Ringling Bros. look like rookie affairs. And old terms like “sucker born everyday” are now simply called an “IPO,” but the implications are the same.
As of this writing it is now proven beyond any shadow of any doubt that what I and others, from within the circle I’m proud to be an alumnus, have said all along is incontrovertible: Today’s capital markets are nothing more than a Potemkin Village creation of central banks.
This is no longer debatable – it is now proven fact. Period, full stop.
And here is your proof. To wit:
The above is a daily chart of the S&P 500™ futures as of this writing. The time frame begins when the former Chair, Ms. Yellen passed the
bag baton to the current bag holder Chair, Jerome Powell as to implement her previously defined course for normalization back in 2017. Guess what? It hasn’t worked out at all as was described, has it?
Remember the term used back then to describe the process? Hint: rhymes with “like watching paint dry.”
Over the course of many years the mainstream business/financial media has sullied and poo-poohed nearly everything people like myself and other alumni have argued during this period. We’ve been called “the tin foil hat conspiracy crowd” and worse. Others would not say our names and would refer to us as “The doom crew” and other pejoratives they thought were clever. (coughBloombergcough)
Yet, when they did want to name this group publicly, they turned to a clearly fraudulent research paper and firm, and in a style that would make Joseph McCarthy hesitate, they all silently cheered as their mainstream brethren smeared the likes of myself and others across the entire press in repugnant fashion.
Need I remind one that the term “Fake News” was born from this despicable act portrayed against myself and others of this group. This term has been turned upside down and now describes much of the media only via the dogged arguments and consistent push back of the President.
To be clear: I don’t care what side of the political aisle you stand and whether or not you like or hate the current President, for that’s not what I’m talking to.
What I want to direct your attention to is something Breitbart’s John Nolte just referenced. This is from a tweet the other day by Karen Tumulty of the Washington Post™. To wit:
So many things that were called “fake news” by the president and his team turned out to be true. The Mueller Report is an exoneration … of the mainstream media.Source: @ktumulty
Contrast the above with what the WP did to myself and others when it comes to “Russia.” From his (the above mentioned John Nolte’s) list of: Top 51 Fake News ‘Bombshells’ The Media Spread About Russiagate. Here’s #31, again, to wit:
“More than 200 websites” were “routine peddlers of Russian propaganda during the election season.”
And for those of you that think I’m just trying to insert myself into what has become the biggest media disgrace of our lifetimes. Once again, to wit:
The above is when this putrid display of journalism via the WP and others was launched. As you can see, that article just below the smear reporting is by yours truly. In the “old days” that would be noted as “front page, above the fold” news i.e., prominent placement. So it’s not like I was on the back cover in the spaces where they would also list ads for “X-Ray glasses just $2.00!”
Again, to be clear: This isn’t about me, its about all of us that woke up one morning to find we seemed to have moved from the “those that shall not be named” category in the business/financial media – to those that will now be McCathy-ized via the mainstream press. It truly was a stunning moment for all of us.
All I can say in retrospect (and pretty much said when they did) is that my deepest gratitude goes out to both Glenn Greenwald, Ben Norton of The Intercept™ who came out swinging with the gravitas and heft to call bullsh#t where bullsh#t was and blew this entire sh#t-show into the gutter where it belonged.
Trust me, you don’t understand the true meaning and feeling associated with the term “McCartyism” until you find yourself in the middle of it for no other reason than the media’s decision to swing a broad brush of dung. For my articles (and others in the “club”) had graced the sites of more than half of the top 10 websites listed.
Again, this was the genesis for the term “fake news.” And to the President’s credit (along with my gratitude) he turned that term back-around and now it is the media itself that are now branded with said moniker, where it belongs. I can’t speak for others, but I know, no matter what they may feel about the current President, one thing is without question: it was he that put the term “Fake News” where it belongs, and for that I believe many are grateful, regardless of what political side or thoughts one may hold.
But this isn’t about the political. But it is about “the club.” And that “club” is comprised of many different writers and more that have been espousing true insightful reasoning, and articulating just what the public markets have become, and why: to the detriment of the so-called “smart crowd” everywhere.
We have argued that without central bank interventionism – there are no markets. Again, period, full stop, do not pass go, or collect $200.
What we have today has been further crystallized via the moniker made over, and over, and over again by one David Stockman (another alumnus of said club) “It’s a Casino!”
So now here we are, the “markets” are now making “new never before seen in the history of mankind new highs” – and the earnings reports so far have been pathetic. Here’s just a further sampling of metrics for you to consider as we elevate even higher:
The volume within said “markets” has been abysmal, we have no resolution on trade, economic metrics continue to be even more lackluster than earlier predictions, the Federal Reserve has jettisoned all credibility to save the “markets” from themselves, central banks across the globe have either restarted or are about to interject their own QE reboots and much, much more – and the so-called parade of circus clowns across the mainstream business/financial media are incessantly touting we’re here because of “good earnings, valuation metrics.” Just don’t mention “LYFT™”
I could go on and on, but you get the point: It’s all nothing more than a sophisticated version (although that’s being kind) of some game show with hosts and guests trying to appear as if they know what they’re talking about, rather than the blatant display of “talking their book” and cheerleaders of their political bias.
Need I remind you of one prominent host telling his audience the reason why one needed to listen to their guest’s viewpoint regarding finance was “because they were a democrat?” (coughBloombergcough)
Sorry, something keeps getting stuck in my keyboard.
I had no intention of writing this piece, for in many ways over the years I’ve documented my thoughts and more which are all in the archives.
However, when I saw that tweet by Ms, Tumulty of the WP I became infuriated. The reason was simple. Hint: She’s at the epicenter of where one the biggest smear campaigns originated – and she’s publicly declaring she’s proud of it. Think about that for a moment and let that sink in.
Maybe it’s not that relevant to you, but to someone like myself (and again I would imagine all the other alumni I share a space with) it’s despicable.
I’m drawn to another quote from the McCarthy era that I find fitting, “Do you have no shame?” I’ll leave that interpretation up to you to decide. I’ll assume you know mine.
Although I have no idea who the people over at ZeroHedge™ are. I do know that I’ve been fortunate enough that they found my material worth while to their readership and posted some 200 of my articles to their front page near daily for years. During that time people like myself and others have been called “tin foil clad conspiracy nut jobs,” “doom crew,” “broken clocks” and more.
However, we have made the arguments in spite of them and have been proven to be the ones who were correct all along.
The current state of the “markets” de facto proves it. Trying to argue otherwise is a lesson in the world of the dimwitted.
I personally no longer will have anything to do with this crowd (i.e., the so-called “smart crowd” of the mainstream business/financial media) other than stand from afar and laugh.
And laugh I will, and am.
I have argued over the years that “I have been wrong for all the right reasons” when trying to reconcile what I (and others) have been explaining against the backdrop of what appeared to be a relentless upward trajectory of said markets.
We said without central bank intervention – it all falls apart. If the central banks intervene? It will keep working till one day it won’t. But that’s what I’ve also described as “The Dirty Harry market” i.e., “Do you feel lucky?”
All I’ll say now again is, repeat my aforementioned question, for that’s all that is standing between you, your money, retirement and more.
Yes, that’s it. I’m no financial advisor or rocket scientist, but it doesn’t take either to understand what these “markets” have now become. That is – if you are willing to actually look, that’s the key.
At the beginning of 2018 Lady Luck seemed to be smiling bright – then the Fed began normalizing – then – it would seem luck was more casino based than from somewhere on high.
If not for a call from Cabo and a complete reversal of all prior statements, assessments and a full blow pulling-of-the-plug on any and all normalization processes by the Fed, these “markets” may have made 2007/08 look like a cake-walk in comparison. Here it is in picture form for those that need remembering. To wit:
So again I ask: Do you feel lucky?
Again what you take away from the above is clearly up to you. And for those still believing in unicorns, rainbows, good earnings, fair valuations and more may I suggest you continue to watch, listen or read the mainstream business/financial media. For they’re continuing to lose viewers almost as fast as Rachel Maddow and others of her ilk and need your support before the advertisers that only pay per “thousand viewer” metrics look for greener pastures.
It may not be long before the “buzzer king” has to find another network’s credibility to destroy. But then again, everyone loves a circus, right? Right? I wonder if CNBC™ ever pondered that those C’s could someday represent circus and clowns? But I digress.
So to finish what many may call a form of rant (and I would get that) what this is all about is the changes that have been going on behind the scenes here on my own site and more. For when it comes to the world of capital markets and more I’ve pretty much said all I need to say, and in the end, have been proven to be more correct that nearly all off the so-called “smart crowd” across the media. Bar none.
Again, the de facto proof of all of this is the current situation made manifest in the “markets.” To those that want to think or argue otherwise? Personally I’m done, and will only say: Have yourself a ball thinking otherwise. I have no gumption to argue or try to convince you otherwise.
In other words: If you don’t get it by now? There’s nothing more to be said, and I’m personally done saying it myself.
Regardless of your thoughts when it comes to the website known as ZeroHedge, one thing has been proven without exceptions: those of us that have been fortunate enough to be included into its club have been shown that it was we that were on the right side of critical thinking – not the other way around as has been professed by its detractors.
I’ve pretty much been of the mindset throughout my life as expressed by Groucho Marx years ago (paraphrasing): “I don’t want to belong to any club that’ll have me as a member.”
However, with that said, when it comes to being able to call myself an alumni member, along with the others that have all argued and laid out our thoughts in earnest on ZeroHedge – and let the chips fall where they may – I can’t help but feel proud.
For in the end, regardless of how anyone wants to try and spin it (and try they are) that little “club” are the ones that have been vindicated and proven correct in the end. But the way it was proven is in the sweetest and best of all ironies. To wit:
It was proved via the “markets” making: New All Time Highs! – not doom and gloom.
Nothing more needs to be said. End of story.
© 2019 Mark St.Cyr