Macro Scoop

Happy Saturday everyone, no Straight Talk this weekend as Dan, Guy and I are taking some time off, imagine that. My wife and I are of course glad our kid is back so we’re looking forward to catching up some more with him.

In the meantime I had a chance to discuss macro with the folks over at the blockcrypto speaking with Frank Chaparro on The Scoop Podcast.

It’s a full hour so if you have the time please have a listen and share. From my perch I think it’s important to get the message out to as many people as possible. As you know I’m fairly of critical of the interventionist regime we have going globally as it disproportionately benefits the few under the pretense of no consequences while blowing massive asset bubbles.

Most people don’t understand this and the truth as I see it is largely not covered in the media in general and only on the surface on occasion in the financial media if at all.
George Carlin, may he rest in peace, once lamented how “people don’t realize how they have been getting screwed over by the system 20 years ago.”

Little could he have imagined to what lengths those in power now go to instill the largest wealth transfer in human history. None of the people in power today will have to deal with the consequences of what is being done today. But you are, and your kids are and their kids are.

This is generational damage that is being inflicted here.

Anyways, I try to speak out and explain the big picture as best as I can.

You can listen to the podcast on the stream below or via the youtube link embedded below that. Have a good weekend.

PS: I’ll be putting out a technical market video out tomorrow.

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Categories: Opinion

33 replies »

  1. Sven, Here’s how to solve wealth inequality:
    Ban corporate buybacks and dividends until all employees are given the same number of shares and not just to the executives and senior management. That’s why 50% of people don’t have stocks. Equal contributions to 401k and pensions, equal vacation accruals and health benefits. Executive get the gold health package while entry level gets an HMO. Equal % bonus payouts. Senior management gets 25% + while entry level gets 5%.
    Corporations/monopolies are causing wealth inequality.
    The SEC needs to come up with an oversight board to solve and monitor employee inequality.
    Just like they did for the sarbanes oxley act.
    The SEC has failed the people and needs to do their job.

  2. Sven – Study the money flow, as the Fed follows the political “free money” gravey train on the fiscal side. On the monetary side, the Fed actually follows Wall Street wishes in order to stop the tantrums from tipping the artificial market house-of-cards. Yes the Fed pushes the printing press button, but the political system and Wall Street force the Fed’s hand weekly. And thus that is why on a weekly basis, the markets are up 66% of the time in 2020, during the worse recession year in the last 80 years!?!? Ironically, the market has rised 69% of the time over the last 120 years so just another “average” year for Wall Street, not so much for Main Street but we can dream of more main street free money, right??? What is not average is both sides in Washington are constantly begging the Fed to print trillions more to buy votes in the name of mercy. Trillion is now the new billion in both Washington and Wall Street, yet duly note that if you spend $1 million a day, it takes 2739.7 years to spend $1 Trillion!!!

    If you want proof that the Fed follows the politicians, see the Bloomberg quote from last Thursday below:

    “Our best shot with them is to say ‘all you care about, in our view, is the stock market,’” House Speaker Nancy Pelosi said on MSNBC Thursday. “Why can’t we spend some more trillions of dollars to shore up America’s working families?”

    And so as the politicians diddle daddle until the end of September on whether we print another $1.5 or $3.4 Trillion on the fourth “buy votes” package this year alone, and Wall Street finally punishes the Fed by forcing the market down to a “Scary” SP500 level of 3,000 (20 forward P/E), then what else can the fed do besides printing trillions for BOTH Wall Street and the Main Street political system. The Fed’s hand is being forced and WE are all to blame as I do not see anyone marching in Washington because their 401k is artificially inflated 50% currently, or they are getting $1000/week to not work a $500/week job. WE ARE TO BLAME AS A SOCIETY, the Fed is only the tool WE use and thus BLAME in order to systematically destroy democracy and capitalism at an ever accelerating pace…

  3. Do not believe the narrative that’s out there that you can’t hold inverse/ leveraged EFT’s. That’s a false narrative that will change after the billionaires have bought up all the shares and want you to buy late.
    “Buy do not trade” sqqq tecs sdow soxs spxs drv

  4. Sven,
    The Fed is creating wealth inequality… when the Fed buys Apple’s bonds and Apple uses the funds to buyback stock or pay dividends they are creating wealth inequality if not all employees were awarded the same number of equity based compensation (shares). As a result not all employees benefit equally from dividends and stock buybacks.

    • The fed is also buying intel bonds and intel just announced $10b buyback program and stock rises after market.
      More wealth inequality created by the fed… stock value goes up for the senior management team at intel that holds stock options or any other form of equity based compensation (restricted stock units). But those employees that aren’t given stock options do not get to benefit from the buyback program.
      The fed must stop immediately their bond buying policy. They are contributing to wealth inequality.

  5. I guess the SEC won’t act on corporate wealth inequality and monopolies until stocks and pensions crash hard enough just like they did after Enron crash with their sarbanes oxley act of 2002.

  6. WOW, even Cramer thinks the markets are idiotic, per CNBC today:

    “The S&P’s new highs are a tail told by an idiot, full of sound and fury, signifying nothing about the hardship of millions of people on food stamps, or the millions about to be fired from service jobs, or the homeless, or the people who are just huddled at home waiting for the vaccine, which currently feels a lot like waiting for Godot,” Cramer said.

  7. Yields going up. Ding ding ding ding.
    Stock market top.
    First gold gets hit, real estate and stocks will follow next.

  8. Sven, I admire that you’re making the case that the Fed is contributing to the wealth gap but maybe the two examples above with Apple and intel will help your case in a very simple ‘how’ the Fed is contributing to wealth inequality. If the Fed is buying bonds of those companies buying back their stock then the fed is guilty; and Powell and Neel either lied about it or ignorant of their policy impact.

  9. One hour ago:
    FXHedge Retweeted
    Stalingrad & Poorski@Stalingrad_Poor
    This is the state of the stock market. A complete and total joke. Great work to the morons at the Fed like @neelkashkari and the morons over at @SEC_Enforcement

    Just like I’ve been saying.
    Sven, call out the SEC as well.

  10. Is it just me (white male) or has anyone else wondered how it is politically correct for an older (67 years old) white man named Jerome Powell to single handedly increase his private wealth 50% in five short months via his $20M-$50M Long Only ETF stock portfollio (per public records)? Older white people own most of the stocks in America, and Jerome is making old white people richer than RIchie Rich every single day via the Powell printing press that ensures stock market euphoria. Seems like a conflict of interest for Powell to be enriching himself and other older white folks, while only 31% of Black and 28% of Hispanic households hold ANY stocks in this Fed centrally planned scheme. How is this not a story in the MSM front page and on nightly news? Oh wait, forgot for a second that the MSM is completely owned by older white men. And I guess Jerome is just ensuring that his three kids are taken care of with that $50 million someday after capitalism and the fiat currency ultimately implode due to his monetary printing madness? Ironically that transfer turns one rich white person into three rich white people. Then in another generation, rinse and repeat by turning three rich people into six rich people. Centrally planned capitalism is laser efficient at increasing wealth inequality, says everyone on planet Earth except Jerome Powell. Guess it is too hard to admit to himself and his family that he created a legalized ponzie scheme and got filthy rich, all while advertising (and possibly believing) it was necessary to “save the little people”. Bernie Madoff would have been proud…

    Per MarketWatch:

    Approximately half of all American households have some exposure to the stock market, but they are more likely to be richer, older, and white: 61% of white households have stock holdings, compared to 31% of Black and 28% of Hispanic households, according to a Pew Research Center analysis.

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