Well, the big news today is that the stock market “surged”, improbably, with the Dow taking out 12,000.
This is on the heels of the Federal Reserve doing what it does, which is financing the financiers. They’re giving away free money to People Who Matter, who will immediately plunge it into the stock market casino to give the appearance of financial health. And of course take their healthy cut.
Meanwhile, American Airlines goes bankrupt. Perfect. A real company, with real airplanes, shuttling real passengers hither and yon. But they’ve had it. Bought the farm.
They should have mortgaged it and hedged their bet with a credit default swap. Passengers? Who cares about them?
You can’t make this stuff up. To understand this system is to loathe it; you wind up pouring cold water on a comatose drunk who doesn’t want to wake up. You’re only helping him not to slip further away and die, but he hates you for it.
Here’s the reality: the one day goosing of the casino represents the spending of the entire Federal Reserve free money eruption. There’s nothing left. Nothing was produced, American Airlines is still bankrupt, but tomorrow will be very much like today – instead of different, which it might have otherwise been.
Feel better? If you’re in the 1% you should; if you’re in the 99%, well, not so much. Change is scary, up and down the line. But the 99% have less and less to fear from “different”, and the Fed has no answer for them on that score. It’s an impasse: you can’t sell stability to people who want to shake things up.
The Dow hitting 12,000 is impressive. So is American Airlines’ bankruptcy. One is a real thing, the other is an illusion. You can’t eat a credit default swap.
We’re in more trouble than I thought. And sooner, too.