This Is the Start Of The Sell-off, Not The End, by Bill Bonner

From Bill Bonner, at bonnerandpartners.com:

BALTIMORE, Maryland – Is Donald Trump broke yet? We don’t know. But at the end of the first quarter, investors held about $24 trillion in stocks. Stock prices are down about 10% since then… leaving the rich $2.4 trillion less rich.

Government bonds have generally gone up. Junk-grade corporate bonds have gone down.

And real estate? It takes longer to react. Real estate is not “marked to market” immediately. Buyers and sellers discover prices slowly.

Phony Wealth

The “wealth” created in Stage III of the U.S. credit boom was largely phony. It came as the Fed dropped the price of money to zero. Underpriced credit gave the gamblers, schemers, and cronies the wherewithal to manipulate markets and bid up their own assets. But now…

All that whining and complaining about how the “One Percent” were getting rich…

All those calls for more regulation and redistribution to solve this “problem”…

All that claptrap about how capitalism always made the rich richer and the poor poorer…

All a total waste of time and a fraud. Capitalism is innocent. This was an inside job – a crime committed by the cronies and their enablers in government.

It was their way, not only of giving themselves trillions of dollars of other people’s money, but also of holding onto the power, status, and wealth they’d accumulated over the last three decades.

Politicians had no more interest in solving this “problem” than a wolf wants to solve the problem of too many fat sheep. But don’t worry. A real bear market will take care of it!

To continue reading: This Is the Start Of The Sell-off, Not The End

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