Sunday Reads…Don’t Shoot The Messenger


This post is by Howard Lindzon from Howard Lindzon


Good morning…

I have a bunch of great reads this week to share. Unfortunately, they are all pretty grim on the economy and markets. I share them today because the trend lower in stock prices seems to be gaining momentum and the authors are making sense.

Josh Brown had a great titled ‘You Weren’t Supposed To See That‘ that covers his thoughts about the Fed and Current Policy. One of the riffs:

Widespread prosperity, it turns out, is incompatible with the American Dream. The only way our economy works is when there are winners and losers. If everyone’s a winner, the whole thing fails. That’s what we learned at the conclusion of our experiment. You weren’t supposed to see that. Now the genie is out of the bottle. For one brief shining moment, everyone had enough money to pay their bills and the financial freedom to choose their own way of life.

And it broke the fucking economy in half.

The authorities are panicking. Corporate chieftains are demanding that their employees return to the way things were, in-person, in-office, full time. The federal government is hiring 87,000 new IRS employees to see about all that money out there. The Federal Reserve is trying to put the toothpaste back into the tube – the fastest pace of interest rate hikes in four decades and the concurrent unwind of their massive balance sheet. Everyone is scrambling to undo the post-pandemic jubilee. It was too much wealth in too many hands. (Read more...)