Loading ...Markets disconnect from reality is epic. I am anticipating very bad news at end of second quarter, then a long hot summer with millions who have nothing to do, taking to the streets all summer long. I’ve been through economic downturns about every 10 years since 1970 when Boeing laid off 2/3s of its work force here in Seattle and the billboard went up saying “will the last one leaving Seattle, please turn out the lights”. Nothing in the past feels like this, not the Vietnam War, Y2K, Dot.Com bust, real estate crash, 911, etc. Now, millions of people cannot make a living due to corona virus lock down, bureaucrats who have no knowledge of business set arbitrary rules of business operation, expecting a restaurant to survive at half or less capacity etc. as an example. Shutting down marinas and parks given what we know about the virus seems ludicrous. In my mind the riots are not about the unlawful death of Mr. Floyd but the result of oppression people unconsciously feel over the shut down of their businesses, livelihoods and way of life with no end in sight. His death just became the excuse for rebellion. The Fed propping up the market can only last so long before the giant bubble bursts, when I don’t know, but it will when reality finally rears its ugly head and there is nothing the Fed can do to hide it.
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