The Real 'Monster' Eating The Nation

"The colossal security apparatus of this country has become a monster eating America... the Deep State’s main motive is moving heaven and earth to dump Trump... But when they do, of course, they are libel to foment an insurrection every bit as ugly as the dust-up that followed the shelling of Fort Sumter."

Goldman Slashes Trump Tax Cut Forecast By Over 40%

"We are lowering our expectations for fiscal policy changes over the next year. Rather than the $1.75 trillion/10 years tax cut we had previously assumed, we now assume a cut of $1 trillion."

Total Airplane Laptop Ban Coming Or Not? What Are The Issues?

Following intelligence reports that ISIS may be planning to attack airlines with laptop computers rigged as bombs, Trump initiated a ban on laptops on some flights from some airports. Rumors had it that the ban was going to be extended to make things “uniformly fair”. Fortunately, common sense prevailed, for now.

The Death Of The Virtuous Cycle

Most Ph.D. economists, including those at the Federal Reserve, have convinced investors, policy-makers and U.S. citizens that durable economic growth stems from debt-fueled consumer spending. This is not only a patently false claim, but it has immense implications for investors...

Fed's Bullard Slams Recovery Narrative, Confirms Fed Top-Ticked Economy; Hints At Fed Policy Error

In a surprisingly candid discussion of the recent economic slowdown, St. Louis Fed president said growth is unlikely “to move meaningfully” this year from the current trend of about 2% and that inflation expectations “have surprised to the downside.” adding that financial market readings since the March decision have been opposite of expectations. "This may suggest that the FOMC’s contemplated policy rate path is overly aggressive relative to actual incoming data."

Frontrunning: May 19

  • Dollar remains weak as beating eases for global stocks (Reuters); Global Stocks Edge Higher as Commodity Prices Rise (WSJ)
  • Trump Mideast Trip Aims to Bolster Ties, Shift U.S. Spotlight (WSJ)
  • Trump Heads Abroad With White House in Crisis (BBG)
  • Russia Probe Heats Up as Trump Tries to Limit Damage (WSJ)
  • Iranians queue up to vote in fiercely-contested presidential election (Reuters)

Bill Blain: "Take The Red Pill, And Let’s See How Deep This Rabbit Hole Takes Us"

"The bottom line is yesterday’s slight bounce back in what remain Risk-Off markets feel about as solidly supported as an alligator in the Washington Mirror Pond.If there is a theme to what’s really going on, its “tedious inevitability.” So, with due respect, “bear” with me (geddit? see what I did there?). Take the Red Pill, and let’s see how deep this Rabbit Hole takes us. "

Global Markets Rebound To End Volatile Week, As Trump Rout Fades

Two days after the biggest rout in US stocks in 8 months, and one day after Brazil's stock market was halted due to a circuit breaker, wiping out out 8.8% of its market cap, traders are eager to put it all in the rearview mirror and in a quiet session on the last day of the week, S&P futures are set for a green open, up 0.2%, in line with Asian and European markets, all looking to close the week on a positive note.