By Bill Bonner
A Minor Derailment
GUALFIN, ARGENTINA – Yesterday, stocks fell.
And volatility shot up.
When too many people have too many knives out at once, accidental cubism may result
The Dow Jones Industrial Average tumbled more than 370 points, Treasuries rallied the most since July and volatility spiked higher as the turmoil surrounding the Trump administration roiled financial markets around the globe.
Major U.S. stock indexes tumbled the most in eight months, while the CBOE Volatility Index [which measures investors’ expectations of price swings on the S&P 500] jumped the most since the U.K. voted to leave the European Union last June, shattering the calm that gripped markets in the past month as the crisis threatened to derail the policy agenda that helped push equities to records as recently as Monday.
Speculators who bought the VIX in timely fashion – a bet that volatility would go up – should have done well.
After falling to the lowest level since 1993, the VIX delivers a 50% up day. Don’t worry though – “experts” are telling us that “nothing can derail the market”. This is just a flesh wound – click to enlarge.
On the Warpath
Yesterday, news broke that President Trump’s deputy attorney general, Rod Rosenstein, has appointed former FBI chief Robert Mueller to lead an investigation into possible ties between the Trump campaign and the Russians.
And with it, the risk of internecine warfare within the Deep State has increased. Some factions – the ones that wear Armani suits from Manhattan or gold braid from Northern Virginia – back the commander in chief.
Other insiders – notably the fake-news media, the universities, and the D.C. establishment – have left the reservation and are on the warpath against the Great White Father in Washington. How will it turn out?
It’s too bad Mr. Trump does not read history. He might get some good ideas. Or some bad ones. About what to expect at this stage of the empire’s decline. At least, he might brighten up his conversation with historical references and wink when he pulls our leg, just to let us in on the joke.
The president is charged with chatting with the former FBI director about ongoing investigations. Maybe he even suggested, sotto voce, that it might be good for Mr. Comey’s career if he eased up on the investigation of Trump’s former national security adviser, Mike Flynn.
These things hardly seem newsworthy, let alone impeachment worthy. Most people yawn and turn the channel to WWE wrasslin’. It’s more entertaining. And more authentic.
Lunacy… and Pizzazz
At this late, degenerate period of an empire’s development, we need more pizzazz… more lunacy… and more sex. The president might better turn the Capitol into a brothel, for example. He might declare his horse a priest.
Or our favorite: He might put on that mischievous smile of his and tell us he is to be worshiped – not kicked around like an empty can.
“Neos Helios” (the new sun), he should call himself; at least Latin scholars and …read more
Source:: Acting Man