EXTRA: Stock Market Proves me Wrong ... or Maybe Not.
I'll tell you why I'm not shaking in my boots in spite of how the major indices all roared back to life today.
First, off, as the stock-market blastoff began its ascent today, Amazon joined the AI big crashers, entering its own bear market this morning from its November high but then clawing back up enough through the day to keep its head out of the polar bear pool for another day, though still scoring a major loss. That means my predicted AI dot-com-style bust is still unfolding, regardless of what happened in the rest of the market today. It seems the stocks that couldn’t crash now just can’t stop crashing.
The AI bubble implosion has now wiped out $1-trillion; so, I remember, as now being somewhat quaint in their naiveté, the major market mongers who laughed when told that tech was going to experience another dot-com style bust. “Inconceivable!” they guffawed. They remind me of the real-estate agent who scoffed in my face and told me I was essentially an idiot when I let him know in late 2007 the housing market was entering a bust that would be the worst seen in his lifetime to such an extent that it would take banks down globally.
OK, but what about the Dow ripping people’s faces off today with a 1200-point gain to hit a record high over 50,000 for the first time in its history, and the NASDAQ with nearly a 500 point gain? Admittedly, impressive. For the moment, all I can say is that big crashes also always have big bounces. With so many high-tech stocks entering bear markets, wait until next week to see if stocks prove their rise and show the crash is over or if this is the classic dead-cat bounce where the euphoric die-hards think things have crashed enough that their greed tells them it is surely time to rush back in and reap some bargains—an event that has a name it is so common during major crashes—a “bull trap.”
This sort of major bounce back during badly declining economic times usually only holds if the Fed or Treasury suddenly announce a major new money-printing rescue because the fall has become too scary for them to tolerate. Such massive intervention, when they finally pull out the big guns, only tells you how bad the crash was going to be.
Bitcoin also managed to claw back some ground today.
Meanwhile, the COMEX is raising margins again on Gold and Silver to try, I guess, to keep the speculative fervor shaken down. With the Commodity Exchange refusing to match up to precious-metal prices offered in Beijing, as China keeps building out its corner on the market by sucking up silver, some US miners are now refusing to sell to the COMEX.
I do have one other explanation for the market convulsions today. An article in the news asked, “Is Supreme Court Justice Samuel Alito Preparing to Disrobe?” The mere thought at his advanced age (nominated a quarter century ago by George W Bush) was shocking.
Weekend preview
Unless the troops that are storming over to Iran today in 747 transports are going to leap out of their planes and parachute straight into war, my Deeper Dive for paying subscribers this weekend will take a break from market news and Trump war threats to let the dust settle and will, instead, lay out many of the government’s lies about the Epstein Files that have just been disclosed this week in the latest megadump of files that didn’t exist.
Those files include Blondi’s own suddenly discovered email to Let’s-Kash-in Patel about Epstein’s “list of contacts and a list of victims”—the list that also didn’t exist … after it had once existed for a short time on Blondi’s desk. That list seems to be like the Higgs boson particle of smutty operations—a thing that can hardly be found and doesn’t exist almost as quickly as it does. Just think of all those girls Blondi, herself, calls “victims” in the email and yet not a single perp brought to trial! Victims that exist without any criminal perpetrators. Another amazing thing. What a circus!
With so many ghosts of crimes past rising like the Phoenix out of Epstein’s ashes, I guess we can see why all those troops are setting up for a possible major diversion exercise over in Iran. Things are getting too interesting on Epstein Island.
