Markets bounced yesterday.
But did they bounce like Fred MacMurray’s flubber (destined to spring toward ever-higher highs?)… or more like the proverbial expired feline (destined for the dustbin)?
We’re not sure. Either way, the answer is worth trillions of funny money dollars.
Our guess is that the Feds will do everything humanly – and inhumanely – possible to keep the spigots primed. Investors are counting on them to keep the punch bowl full and the party humming.
Whoever is seen to call “closing time” will likely lose popularity and, with it, power.
And yet, turn the tides must.
As noted in yesterday’s communiqué, every cycle eventually comes to an end… reaches its zenith, then proceeds to retrace time and trend.
One day – potentially one day soon – 500… 1,000… 2,000 point daily Dow selloffs will seem like a ceasefire, a moment of languid respite in which to luxuriate. Investors will look back at triple-digit intraday swings and wax nostalgic about the “good ol’ days.”
Meanwhile, over in the Big Top Tent of trapeze artistry, dancing elephants and government shutdowns, it’s bread and circuses as usual.
When we boarded our plane in Mexico City at sunup, the most powerful government on the planet was at war with itself.
When we landed in Medellin (via Bogota) some 12 hours later, we were delighted to see the Statist-on-Statist action continuing, virtually unabated.
Like a cheery anarchist’s advent calendar, every passing day brings with it a new and delightful surprise.
First we start with layoffs and curtailed duty at the Departments of Agriculture, Commerce, Homeland Security, Housing and Urban Development, the Interior, Justice, State, Transportation, and the Treasury and the Environmental Protection Agency…
Then, before you know it, things are really steaming up…
In saunter the FDA, FEMA and the SEC… each promising to titillate our senses by removing one article of action after another.
Soon they will all be bare… denuded of power… exactly as we’ve always fantasized them…
Ah, but we've let our imagination run away with itself.
Today is only Day 33 of the shutdown, after all. There’s much more to go before we’re anywhere close to total and complete shutdown.
Fortunately for us, time appears to be on our side...
Joel Bowman for International Man