“There is no cause to worry. The high tide of prosperity will continue.”
Andrew W. Mellon, Secretary of the Treasury, September 1929
“Secretary Lamont and officials of the Commerce Department today denied rumors that a severe depression in business and industrial activity was impending, which had been based on a mistaken interpretation of a review of industrial and credit conditions issued earlier in the day by the Federal Reserve Board”.
New York Times, October 14, 1929
“While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. There is one certainty of the future of a people of the resources, intelligence and character of the people of the United States-that is prosperity.”
President Herbert Hoover, May 1, 1930
“The sense of responsibility in the financial community for the community as a whole is not small. It is nearly nil.”
John Kenneth Galbraith, The Great Crash of 1929
It was a risk on day, as the algos shook off any concerns and went into ‘up mode.'
Big cap tech pushed to a new closing high.
But less noted in the enthusiastic commentary from the spokesmodels for Wall Street, the broader market continues to lag, badly.
The Russell 2000 still is not confirming this move. I direct your attention to the first chart below.
This greatly undermines the hypothesis that this ‘stock rally' is signalling that The Recovery™ is here at long last.
More likely, this is La Bubble Partie Trois.
Smells like another new era, and an inflation in paper financial assets as the Fed and the pampered politicos spread the new monetary wealth— upwards to the favored few.
And some would give them yet even more freedom to print at will to solve our problems. And this would make them suddenly virtuous how?
They have created enormous sums of money, and it continues to be misspent on nonsense for the benefit of the sectional monopolies like Big Pharma, Big Healthcare, Big Tech, and The Banks.
There is unrest bubbling under the surface of all of the major Western economies, from the US, to the UK, to France, and even stoic Germany.
