Testy Tuesday – Infections Up, Markets Down Ahead of the Fed

Food pantries in New York City are turning people away.  

While we have been marveling at the returns from the S&P 500 and the Nasdaq in the past few months, more and more peoplle are starving and less and less assistance is available to help them as the virus people no longer believ in continues to rage out of control.

I don't want to be your Cassandra, my "gloomy" outlook costs us the subscribers who like to hear BUYBUYBUY to confirm their bullish bias and, these days – there's a lot of them!  Still, like the prophet, I am cursed to utter truths, yet I am rarely believed.   

One reason for that is that I operate on a longer time-frame than most people.  I'm always looking at the Future but the Future is a muky place and it's very hard to judge distance – even when the direction is very clear.  With the virus it's all been about the numbers and we could tell by those numbers that the lockdowns were ending too early.  How early?  Who knows?  Just early and then how damaging?  Also don't know – but we are now finding out the hard way.

The Food Banks, for example, are 39% closed due to lack of funding, lack of food or lack of workers in a city that has been devastated by the virus.  In the Bronx (Black Neighborhood) 87 of 174 Food Banks were forced to shut down – HALF!  When you lose a food bank you lose their donor base but you don't lose the NEED for food and people from the Bronx then have to travel to other places to get it and that puts more pressure on those Food Banks – a very bad cycle. 

New York The Food Bank provides 21M meals per quarter and the US Government has dropped $2.7Tn (so far) in direct stimulus which has (so far) made the World's top 400 Billionaires $565Bn richer since the pandemic began.  As I mentioned above, I do a lot of math and $5 x 20M = $100M and there are 27 THOUSAND $100Ms in $2.7Tn so it would take 1/27,000th of the aid (or 1/5,650th of the…
continue reading