by Karl Denninger, Market Ticker:

Well Mr. Trump I hope you like losing in November.

You deserve it since you hitched your entire Presidency to the stock market, and guess what — it’s collapsing.  In fact, ain’t it funny that the last 1,000 points of the S&P, which takes us back all the way to the end of 2017, have disappeared in days?

The DOW is back to where it was in August of 2018.

You should have locked the border under your broad immigration authority in January.  Now you’re ****ed because the virus is here, it’s in the community, and instead of mitigating the impact you imported it.  Suck a goat and reap the whirlwind, sir!

The problem, as I noted back at the time, is that any politician who does that proactively, which was the right thing to do, and then has the outbreak be minimal or not real serious, loses his or her job.

Had I been President as soon as I detected that China was lying (which was evident in early January) I would have slammed the border closed to everyone who is not a US citizen, period, and instituted a mandatory 14 day monitoring for any US citizen who traveled abroad and then returned — and when I caught someone coming in with it, that would be the end of outbound travel too.  Why wasn’t it done?  Because of the howls of protest from companies like Spamazon, Microsuck, Facesucker and dozens of others who have employees and such back and forth on a routine, all the time basis.

This would have set off an immediate stock market crash but look, we got that now, right?

By way, don’t think I’m just bagging on The Donald here.  Have you seen any of the left-coast state governors demand a cessation of importing cases to their states by these companies?  Of course not.  How do you think Kirkland got it straight up the ass?  Governor Inslee is directly responsible for that and public health is, within the states themselves, a state government issue.  He sucked off Jeff Beelzebezos and the rest of these globalist assclowns who drove the state’s property values to ridiculous heights based on slave labor from turd world nations instead of raising hell the instant this issue became evident.

Is the crash unwarranted?  No.  It’s very warranted.  Leisure and hospitality are 15% of US GDP and certain industries such as the cruise industry are effective zeros until this virus is dealt with.  Further, due to the leverage that was encouraged by The Fed and the Federal government since 2009 with all of their bull****, and the abuse corporations have committed as a result of being goaded into it such a shutdown cannot be absorbed without bankruptcies by many of these firms, which renders their equity valueless.

A recession in the US is thus inevitable; a “best case” situation is that leisure and hospitality likely takes at least a temporary 30% hit.  That’s five points off GDP all on its own, at least for a little while.

As I noted previously in the podcast there are and will be winners.  If you’re in the process of buying a house now and your income is not dependent on the leisure and hospitality business, nor on imports of Chinese garbage (e.g. you don’t work for Spamazon, et.al) then the rate shock downward is going to help you.  In addition once this settles down if history rhymes home values will go up materially about a year from now since everyone buys a payment and once the fear dissipates the lower rates will immediately reflect into prices.  This of course won’t matter if you don’t have a job, and further, it’s going to be pretty ugly for renters in any event because taxes at the state and local level are only going one way with all the costs being heaped in here and the reduction of travel and entertainment is going to hit sales tax receipts too.

Read More @ Market-Ticker.org