The economy was already heaving in the toilet before COVID-19 dropped the lid on its head and sat on it. Sales, revenue, real earnings, manufacturing, and finally the services industry had all puked. Last week, stocks got the Great Flush as the market went down with the economy.
Be careful who you listen to in times of Great Depression. The permabulls are already telling their crowd now is the time to catch bargains and ride the market back up. Sit and think on that before your next movement.
I am saying this in ugly terms because I’ve argued with the unwavering permabull view so many times in the past. Now they’ve clearly failed, yet some are still trying to paint it pretty. They are rushing to save face over their disastrously failed forecasts for 2020 — predictions they were glibbly certain of just days ago as they bashed anyone who dared to be bearish as being ridiculous and missing the train to great success. So, I’m going to strip the paint away with blistering verbiage that fits the slough we are now in.
If the permabulls cannot learn how wrong they were from the disaster that just befell them, they deserve all I am about to give them and all they get in the days ahead from the market, too.
My self-assigned task here has always included being a critic to the majority in media and markets who join in “harmonic convergence” about the economy as they sing of the Great Bull that shall rise into the white light for eternity. It’s all bull.
Their obsessive compulsion toward praising the everlasting Bull, even when things are so obviously bad as they became this past week, grew all the more odious when I sat down early Sunday morning and read one of the permabulls I check in on from time to time as he tried to put a good face on his failed predictions:
Read the rest here: The Great Recession