U.S. stocks plunged Thursday in their worst day since the 1987 Black Monday crash, ending the 11-year bull market. If you’ve been following my blog, you know I expected a downturn and an end to the bull market in the last quarter of 2017. When that didn’t happened, the dumbshits laughed at me; the same dumbshits who now are screaming “corona virus” hurt.
“Billionaires and bosses at the top of Wall Street didn’t see things getting so bad so fast.
Some of the world’s most famous hedge fund managers gathered on Sunday night at the Capital Grille near Rockefeller Center, a steakhouse where the double-cut lamb chops with mint gremolata run $53. There was John Paulson, who made his billions from the housing collapse that helped trigger the last financial crisis. And David Einhorn, who came out on top when the dot-com bubble burst. And Dan Loeb, who got rich by baring the sharpest teeth.
But these masters of capitalism, brought together by Goldman Sachs Group Inc., were lacking their usual swagger. Instead, they spent the night trying to grasp what was going on as the coronavirus known as Covid-19 raged around the world and a fight between Russians and Saudis hurled the oil market into chaos, according to people there. The fallout could resemble the 2008 crisis, the 2001 collapse, global chaos in 1998, or something else—the very investors who made their fortunes from them weren’t sure. They stared into phones that told them stock futures were falling so much that trading would soon be halted…”
Bloomberg News
The corona virus story is just a black swan event, an event that didn’t happen (more than) two years ago, and because it happened now instead of earlier, the downturn will also be more severe: we’re looking at not just a plunge, but a recession.
Earlier = better, later (2020) = worse. After plunging earlier, Bitcoin bounced above 5K, oil is in free fall, gold held steady, palladium fared worse.
Only those who don’t know the basics are bulshitting about the Coronavirus.
“Gary Cohn, Goldman’s longtime president before he became Trump’s top economic adviser, said the Saudi news on Sunday was an “Oh, my God” moment.”
Bloomberg
Come’on Gary…Don’t you read this blog…
“I do think financial people live in a different world,” said Derman, a former Goldman Sachs managing director. “It’s their job to think about how other people will react. Maybe they can’t do that.”
Bloomberg
They should have seen it coming two years ago…maybe three.
I did.