It’s Time to come Out Of The Cave
(formerly Guerrilla Capitalism. Pardon us while we cutover to the new name)
Out of the Cave is about…
Going on a over a decade faux recovery, we are now in a scenario where central banks are essentially trapped at or near the zero bound. Market signalling is dead, fundamentals don’t matter. Markets are remaining irrational longer than anybody who seeks to eschew the “New Economy” Kool-Aid can stay solvent.
What does the contrarian minded, historically aware, rational value/Austrian minded investor do? Find out here.
The other side of interest rate suppression and financial repression is 10+ years of Cantillon Effects, where new money benefits those who receive it first, leading to an Everything Bubble where financialization and consolidation squeezes out real businesses and the middle class.
It can’t last forever and after it ends it’ll be the real businesses with real models who survive the fallout. Here we talk about being one of them.
It’s hard to imagine that socialism, “The Failed Idea That Never Dies”, is back with a vengeance and enjoying a newfound vogue among the mainstream press and even the political elite.
Make no mistake, this movement has traction and it’s gaining momentum. As always, flame out and crash in a heap ignominious failure. Until it does, things will get worse before they get better, so we’ll look at ways to preserve wealth and property through this approaching dark era.
The Reversion Will be Mean
We hear a lot of talk in financial and economic circles about “reversion to the mean” or some variation: reversion through the mean or that reversion typically overshoots the mean. If you believe in cycles or oscillations, when you see something get wayyyyy out of whack, you may not know how much further out of whack it’ll go (“the market can remain irrational longe [...]
Even Unicorns Get the Blues
Heretical Judge Rules that Uber Can't Externalize its Labour Costs As I briefly covered in my AxisOfEasy tech digest this week, Uber and Lyft were bracing themselves for a ruling by a California judge that threatened to force them into treating their wage slaves drivers as employees. Lyft said if the ruling went against them it would cause "irreparable damage". Uber CEO Da [...]
Wait, why is The Fed buying my biggest competitors’ bonds?
On Cantillionaires, Sycophants and Losers "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning" -- Henry Ford "The ultimate crisis will occur when the situation is so thoroughly perverted that the defenders of the status quo can no longer resurrect [...]
Let’s Talk Privilege….
After the 9/11 terror attacks, when our privacies were permanently revoked, and we entered into "a war which would never end in our lifetimes”, Bush II proclaimed “They hate us because of our freedoms”. Some critics thought that was an almost nonsensical statement to make, while the credulous took it at face value. It framed whoever perpetrated the attacks as some [...]