I became physically ill when I saw Jim Cramer's combined headlines; how could people possibly care about a record week of stock market gains when 16M+ American's are out of work! How have we lost our way so gravely? Where has our integrity, morality, and accountability gone? These unemployed Americans are our neighbors, our friends, ...our family! Have companies announced stellar earnings? Did states shorten the stay-at-home timelines? NO!
The people in power (both political parties) act euphoric because 'STOCKS!' are higher as if they solved something! They act ecstatic like a 'kitchen sink' of trillions of dollars is a cure for a medical problem. Never mind being complicit with the Fed completely in re-writing the rules of the game during active play. The Fed created many new programs to buy assets they were never intended to buy and even back dated their privilege. BACK DATED! The people in power are celebrating the tearing down of laws and free markets because it is self-serving; all the while neglecting the reality of the situation.
We remind those in power that nothing good is born from lies and ramifications will come. The destruction of free market price discovery and concealing of risk can only hover so long until economic gravity overwhelms. Our way forward is to remember the stock market is not the economy and 16M+ and growing Americans do not go back to work overnight. Cycles take time to play out and the government is not an economic god that can accelerate time. The Fed will attempt to fight fire with fire by fixing debt, leverage and credit issues with more debt, credit and leverage but inevitably the fallout will come. 56 Capital Partners honestly thought morality would prevail, naïve yes, nonetheless we learned a lesson.
At 56 Capital Partners, our only ignorance was how far people in power would go without morality to break the rule of law. How do you invest when they are willing to back date laws to help their constituents? Nevertheless, we will not quit because we believe there are still more good people than bad, more with integrity than without, more people who care about our country than do not! We will continue to preserve financial integrity during these Shakespearean sized tragedies for the benefit of our clients because they are our neighbors, our friends, ...our family.