It makes perfect no-sense.
Take a trip across America, the land of the freedom-less home of the fearful.
Business are out of business or barely back in business. Workers are out of work. At the end of May, 21 million were unemployed, or nearly four for every job opening.
According to the Economic Policy Institute, 17.6 million unemployed Americans won’t be returning to their pre-lockdown jobs.
“It is likely that many of those who expect to be called back to their jobs will find that those furloughs have turned into permanent layoffs,” said Heidi Shierholz, Senior Economist and Director of Policy at EPI.
Yet, the equity markets keep booming.
Again, the Federal Reserve and Washington’s monetary methadone injections being pumped into Wall Street money junkies has zero to do with Main Street.
And, as is now being reported, the inside gang of governors, who locked down businesses and put millions out of work, along with wealth managers, big law firms, and other political insiders were among those gifted with billions of relief loans that We the Little People must pay for in taxes.
Clearly, with capitalism dead and the Bigs being too-big-to-fail, what will keep the markets up and what will sink them?
In this issue, Gregory Mannarino’s article, “THE MARKET IS FLOATING ON OCEANS OF DEBT,” sums up what the Fed is doing and forecasts where the equity markets are heading.
Today, U.S. equity markets got an early boost on news that the U.S government awarded drug maker Novavax a $1.6 billion contract to develop a COVID vaccine.
Over fears of rising virus cases in a number of states, however, the Dow sank nearly 400 points, the Nasdaq fell from its record high, and the S&P 500 fell for the first time in six days.
Ignored, of course, as we discuss in this Trends Journal, are the facts that the reason virus case numbers are rising is because millions are now getting tested and most new cases are among the younger demographic who are asymptomatic.