You may ask: why am I not writing about stock market. Well, now I am. The "market" got slaughtered in the last 2 days by losing 1,800, or whatever the number, points. So what? We have to accept two major truths about stock market:
1. US stock market is not just "overvalued", no, this is not the term--it is grossly and criminally overvalued;
2. US stock market has a very remote, if any, relation to actual real economy of the United States--it long ago became a place where financial speculations and fraud became Modus Operandi;
Yet, there is a degree a practical purpose in this, allegedly Corona virus-inspired, spiraling down because one can trade all kinds of shitty financial derivatives for only so long before the actual house of cards comes down.
It really doesn't matter how the stock market behaves itself--in the economy where General Electric, granted financialized into the ground, is replaced by Walgreens at Dow, anything can happen. Economics based ONLY on bottom line or profit-only ideology is fragile by definition. Is coronavirus as dangerous as it is claimed to be? One cannot fail to notice that majority of people who died from it are of Chinese ethnic (genetic) origin. Some people go as far as state that it was a some kind biological weapon unleashed on China, well, I don't know about that. Now, what are the real chances that this thing becomes a pandemic? Let's relive those wonderful times of SARS panic. Origin--China again and, yet again, bat-related. Anyhow, this was expected by many and as one observer puts it:
"The Fed should not be cutting interest rates but that's what they are going to do because it's the only thing they can do." That is not going to cure coronavirus or the economy, it's simply going to make US economy sicker, Schiff notes. "The US economy is in gigantic bubble and maybe the coronavirus is going to be the pin." However, there are much deeper problems than the coronavirus, as the markets are generally very overvalued, according to Schiff. "If we had a healthier economy we could better withstand... But the bigger problem is that the Fed's cure is actually worse than this disease," he says.
One doesn't have to be a stock-broker to understand this.