FWIW I have gotten a few messages asking for my call on what the next few weeks hold for the financial markets, maybe take a moment to digest before flaming the living shit out of me. I don't read it anyway
Here is my opinion. USD as a measure of the US economy is totally screwed. Reasons 1) US yields are now at zero. 2) COVID cases exploding out of control in US, no border controls, no feasible quarantine or lockdown and most importantly no cohesive national leadership thru this crisis. EU expects culmination in about 4 weeks and every EU country has a real lockdown (not fake like in NYC and Phil) and strict rules, closed borders, everybody wears facemasks. You can't imagine what is going on right now in Spain and Italy, people in Madrid are lying on floors with oxygen masks (or without).
Once this fully hits the USA in 8 weeks it will be on every TV and then there will be more pressure from pension funds and banks to dump US stocks and bonds at any cost.
Soon the US will become so infected that other countries will start to dump the USD as a reserve currency. COVID19 will weaken the US so much it will lose its AAA status. It will weaken the military and will weaken US based companies. US will totally collapse, financial meltdown is coming and the strongest weapon of the US (the USD) will become it's largest weakness
Overall, worst (way worst) is yet to come. Minimization, deflection, "I'm not responsible" and lack of early testing, isolation of those infected has lead to this. Just my opinion
Here is my opinion. USD as a measure of the US economy is totally screwed. Reasons 1) US yields are now at zero. 2) COVID cases exploding out of control in US, no border controls, no feasible quarantine or lockdown and most importantly no cohesive national leadership thru this crisis. EU expects culmination in about 4 weeks and every EU country has a real lockdown (not fake like in NYC and Phil) and strict rules, closed borders, everybody wears facemasks. You can't imagine what is going on right now in Spain and Italy, people in Madrid are lying on floors with oxygen masks (or without).
Once this fully hits the USA in 8 weeks it will be on every TV and then there will be more pressure from pension funds and banks to dump US stocks and bonds at any cost.
Soon the US will become so infected that other countries will start to dump the USD as a reserve currency. COVID19 will weaken the US so much it will lose its AAA status. It will weaken the military and will weaken US based companies. US will totally collapse, financial meltdown is coming and the strongest weapon of the US (the USD) will become it's largest weakness
Overall, worst (way worst) is yet to come. Minimization, deflection, "I'm not responsible" and lack of early testing, isolation of those infected has lead to this. Just my opinion
