Thursday, June 11, 2020


Financial markets were rallying until recently, but then Wall Street was force-fed a hot, steaming cup of reality.
Stocks suffered their biggest one-day pull-back in three months on Thursday as traders grew concerned about the number of coronavirus cases increasing in some states that are reopening up from lockdowns....

The major averages posted their worst day since March 16, when they all dropped more than 11%....

“You’re seeing the psychology in the market get retested today” as traders weigh the the recent uptick in coronavirus hospitalizations and a grim outlook from the U.S. central bank, said Dan Deming, managing director at KKM Financial....

“The reality is this thing’s going to linger longer than probably the market had anticipated,” Deming said.

What did these people expect when we embarked on coast-to-coast reopenings without significantly reducing the number of new infections and hospitalizations (except in hot spots such as New York) and with little or no test-and-trace capability in most of the country?

I suspect that many of the Masters of the Universe consume as much right-wing media as your uncle who sends Pelosi-as-Wicked-Witch email forwards. I imagine that a lot of them believe the pandemic is all a big hype -- they assume that the disease is no more dangerous or contagious than the flu, that the virus dissipates in the warm weather, that all the concern and the lockdowns were part of a liberal plot to destroy the economy and blame the damage on President Trump. These guys know how to make money, but I don't think we have any reason to believe they're smart or well informed in any other subject area.

Trump doesn't actually know much about business, but he really doesn't know anything about anything else. In his world, though, being an ignoramus about non-business subjects is probably not unusual.

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