Gold popped $10 at 6AM on zero news. So I guess the White-ass honkies are piddling their frilly pink panties again, running around looking to reposition themselves hither and yon.
BI especially is flooded with bullshit doomer stories this morning: Greece doom, bond armageddon, China deflation, commodity bubble, consumer spending collapse, yada yada yada the same old whiny bullshit will you people never bloody well learn.
So I guess we'll see some more idiocy from the markets before a summer liftoff.
Meanwhile, here's the real news:
Bespoke - tight range market. It's because the hedgie panty-piddlers keep oscillating between wanting to vomit stocks into a bidless book, and wanting to buy that 10%-per-year yield growth that they keep sticking their noses up at. Well, like any inward-spiralling chaotic system, eventually this oscillation will vanish down to quantum level and a new cognitive framework will explode into being. So buy SPY, you panty-piddlers.
Pragmatic Capitalism - this recovery can't get any respect. Hey, it takes lots of years (or lots of Ecstasy) to get over a bad case of post-traumatic stress disorder. Quote:
If I wanted to be the most popular kid in the financial blogosphere I’d write dramatic articles every day about how the world is ending and what the next crisis is going to be. That’s 10X more exciting (and useless) than a post like this. But I made a promise to myself long ago that I would never succumb to that sort of emotional writing. I promised myself I’d write about what I actually see and try to provide the reader with a pragmatic and objective perspective of reality.Amazing that BI reprinted this, Cullen, considering you just bitch-slapped them for being a bunch of ignorant doomer-whores. Then again, just like real whores, I guess BI doesn't care what anyone says about them.
Chicago Fed - Fed finally realizes that NAIRU is under 5%, and will drop even further over time. Quote from the paper's intro:
This article discusses why changes in the composition of the labor force may have lowered the natural (or trend) rate of unemployment—the unemployment rate that would prevail in an economy making full use of its productive resources—to 5% or less. A lower natural rate may help explain why wage inflation and price inflation remain low despite actual unemployment recently reaching 5.5%—a figure only slightly above prominent estimates of the natural rate, such as that of the Congressional Budget Office (CBO). Demographic and other changes should continue to lower the natural rate for at least the remainder of the decade.Finally someone with some sense is reading my blog.