Trump tax cut doubts hit stocks (We need tax cuts and deregulation. The economy needs to breathe.)

Taxes need to be cut. That is key. That must happen. Deregulation needs to happen. That also is key. The economy needs these things so that it can breathe.

But between Ryancare and the “Russia” dog and pony show perpetuated by a delusional (and wounded) political class in Washington the market is worried about the future.

And then there is the $20 trillion in debt hanging out there because for some reason we find it impossible to cut government.

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Trump cheers stock market’s ‘longest winning streak in decades’

The stock market is a weird thing.

I was listening to Bloomberg this morning and the pundits were pontificating as to the reason for the recent run up in stocks. Everyone agreed that it had everything to do with Trump, however the core reason for the run up was in dispute. Some said that the market was still factoring some sort of Trump “stimulus” of the classic Keynesian type. Others pooh poohed this idea and said that it was “animal spirits”

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David Stockman: Trump stock bump in danger, debt looming, no corporate profit surge coming (VIDEO)

The “Trump bump” has been dramatic. There was a collective sigh of relief from investors as they watched Obama fly away on Marine One. Maybe, finally, the economy would be allowed to breathe.

Perhaps to some degree. But David Stockman warns correctly that the debt monster looms over the economy and that the debt monster is hungry. If we see a real move up in interest rates that debt, roughly 20 TRILLION dollars, is going to be much more expensive to finance.

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“No Reason” Why ECB Shouldn’t Buy Stocks: Peterson Institute

No reason eh? It’s perfectly OK for a central bank to buy the market. Price discovery? Reality? Such things are so passe. So pre-2008.

Remember when people used to talk about this sort of thing in hushed tones? It wasn’t that long ago. Now? Right out in the open. Heck in some places it’s already DONE right out in the open.

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Light that match: Yellen suggests radical new Fed policies

Yellen says the Fed is not “ actively considering” any of the radical and destructive ideas she outlines in her speech, but if not why is she mentioning them? These ideas include:  printing money to buy assets including stocks, targeting 4% or higher inflation, printing money until nominal GDP hits a certain target (Fed speak for until we get as much inflation as we want).

Also note that when ’08 hit, the Fed bought government supported mortgage securities even though that was illegal at the time.

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Dow, S&P 500 shake off Brexit, log best week of 2016

They didn’t “shake off” Brexit. The markets, to almost everyone’s surprise – including Brexiteers – celebrated the UK’s independence.

There is a sense that the lock down the establishment banks and governments have had on things for years and years has broken down. Markets are taking in the oxygen. It’s real air too, not central bank created life gas.

Markets go up and down (at least they used to) and any future dip will probably be blamed on Brexit by some.

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Brexit crushes the big banks, other stocks

Image: Screengrab from CNBC video

This is called “an excuse.” People wanted to sell, they saw a big fat excuse to sell in Brexit, and so they have. (Some were just sure that Brexit wouldn’t happen and were simply forced to sell.) Smart people are also prudently looking to buy. But one way or another life will go on and the world will adjust. The big banks just got socked and that is a good thing.

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Buffett says if the government did THIS the Dow could hit 100K

Savers, you can forget about opting out of the stock market. If you want any kind of return you will get in the market and you will like it. So what if artificially repressed rates are crushing you? So what? Do you think you matter? Most of you savers will be dead soon anyway. You and your bank CDs. How quaint. Now pony up and buy some more stock grandma. Oh I’m sorry? You think there’s too much risk in the market?

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“There is no (global) recovery” Banks are abandoning the Japanese stock market, Japan to just dump “free” cash on its citizens? (VIDEO)

Abenomics, the massive Keynesian experiment spearheaded by the Japanese Prime Minister has failed and now this failure is just becoming obvious.

This stimulus effort having failed some economists (see the attached video) now think that fiscal stimulus is needed. (As opposed to monetary stimulus.)

That ain’t gonna work either but things are getting ugly and the Keynesians are getting desperate.

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The Year Nothing Worked: Stocks, Bonds, Cash Go Nowhere

Flat as your returns.

It is no secret that we at ACC believe there are deep systemic problems in the economy. All the current cronyism, economic obfuscation, over spending, over taxation, government intrusion, and most importantly Keynesian central bank meddling does not bode well for the future. (Though we can and must correct our ways in an historic way.)

Will 2015 be looked upon as the year the “recovery” began to completely stall? Will 2016 be worse than a stall?

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Chinese investment bankers missing

The Communist Party of China has lost some credibility, at home and abroad. The recent crash in Chinese stocks was ugly and exposed the tenuous underpinnings of the Ultimate Crony Capitalist State. China’s unstoppable rise to the top of the global economy suddenly didn’t look as unstoppable as it had. Economic issues which critics had raised for years (particularly the real estate bubble) and which had been glossed over by international analysts and Chinese leadership alike suddenly became of serious concern.

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