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About that Stock Market Rally Yesterday: Nothing Like the Classics

Hopium springs eternal.

Are you reelin’ in the years, Stowin’ away the time

And the reason they are called the classics is because the music, the writing is timeless. Just like yesterday’s stock market action, one can go to the most recent nastiest of nasty bear markets just to see a snapshot of what I mean.

Everyone needs to break out their CD player, record player, hell an 8 track player, crank up one’s favorite tunes to see classic, and I do mean classic bear market action. Here is a six month chart from 2008 of the S&P 500:

“Relax,” said the night man,”We are programmed to receive, You can check-out any time you like
But you can never leave!”

The problem, starting with the disruptions in 1987 and 1998, is that the Federal Reserve designed markets where the money had to stay invested or there was little chance of a decent return. The market however was never designed to withstand a high inflationary environment with a potential risk factor of systemic collapse.

What we are witnessing is not a financial collapse, yet that is, but a broad based economic collapse where demand is destroyed by the very monetary system the Federal Reserve and other central banks claim they are trying to stimulate and protect.

Fast forward to the recent market action:

Hollow headlines, the usual suspects on the financial bubblevisions proclaiming this could be a “buyable bottom”, and hopium sprayed like Jay Powell with his money printing machine going “Plaid.”

It’s almost as if we have Spaceballs running the Western economies now.

Make the best of the situation, Before I finally go insane

Enjoy the market action. There will be more rallies, more crashes, and lots of distribution by the big guys. The West has declared economic war on Russia and China so they will do everything possible to present a false hope that inflation isn’t really that bad and will allow their PPT’s to engage in market manipulation to hurt commodity prices. Especially watch the manipulation of the gold, grains, and crude oil markets on a daily basis, even if the long term trend lines are still vertical.

Nothing like the classics, be it a major bear market or old music…

They burned down the gambling house
It died with an awful sound
Funky Claude was running in and out
Pulling kids out the ground
When it all was over
We had to find another place
But Swiss time was running out
It seemed that we would lose the race

Smoke on the water, a fire in the sky
Smoke on the water

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