The Zeitgeist – 3.27.2019

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Every morning, we run the Narrative Machine on the past 24 hours worth of financial media to find the most on-narrative (i.e. interconnected and central) stories in financial media. It’s not a list of best articles or articles we think are most interesting … often far from it.

But for whatever reason these are articles that are representative of some sort of chord that has been struck in Narrative-world.


Treasury Swings Jump Like It’s 2016 [Bloomberg]

So … we write a lot here at Epsilon Theory. Maybe too much for people to keep up. But there are a few notes that are canon, and one of them is Things Fall Apart (part 3) – Markets. Here’s the conclusion from that note:

The transformation of capital markets into a political utility results in a structural dampening of equity volatility, not Treasury volatility. Why? Because the equity market is the political scorecard, not the Treasury market.

Trump said it out loud, because he can’t help himself. But it’s been true for a decade.


Uber Steers $3.1 Billion Careem Deal as Implied Value Gains Ahead of Planned IPO [The Street]

There’s been some debate within the ET commetariat as to how one represents the dueling banjos of Deliverance in text.

Whatever … all I know is that “squeal like a pig” comes in Act III.


Apple unveils streaming service, credit card and more [CBS News]

Everyone is focused on the streaming service and content creation. The real move is into financial services. Amazon won’t be far behind.


Cousins Properties, Tier REIT to Merge in $1.5 Billion Deal [The Street]

My god, this is going to be a record year for investment banking, isn’t it? If you know what I mean. And I think you do.

What? Can’t you believe in a comeback?


Opportunity Zones Hype Overshadows Potential Pitfalls and Risks [NREI]

As Neil Young said, rust never sleeps. Neither do raccoons.


Minimum wage would be $33 today if it grew like Wall Street bonuses have [CBS News]

LOL. Just watch … this will be a 2020 campaign factoid. MMT, here we come!


Executive Order on Coordinating National Resilience to Electromagnetic Pulses [White House]

TFW … you’re thinking about breaking up with Little Rocket Man.


Bed Bath & Beyond explodes by more than 25% after activist investors attack [Business Insider]

As a recovering short seller, I have the same reaction to news like this as I do to video of Lawrence Taylor breaking Joe Theisman’s leg … I just can’t watch. Gotta turn away.

It only takes one experience like this to recognize the Golden Rule of Short Selling: never short a stock with >10% of the float short.


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The Daily Zeitgeist

We’re Gonna Need a Bigger Boat

By Ben Hunt | July 15, 2019 | 0 Comments

Financialization is not a mean-reverting phenomenon. It’s too good of a gravy train for Wall Street, corporate management and the White House to stop now. So they won’t. Like any self-respecting Great White shark, the Nudging State and the Nudging Oligarchy never stop swimming. They never stop eating.

Want to survive these financialized waters if you’re potential shark food? You’re gonna need a bigger boat.

Read more

When Did You Stop Beating Your Wife?

By Ben Hunt | July 12, 2019 | 1 Comment

“De Blasio’s ‘pay parity’ hypocrisy” is a feature article in today’s NY Post, and a central article in today’s media Zeitgeist.

Dig a little deeper into the “scandal”, and you learn that the “evidence” is complete horseshit.

It’s an article specifically designed to manipulate someone like me … someone who is VERY predisposed to believe the worst about Bill de Blasio because I dislike his politics SO MUCH.

It’s a rage engagement, one of two primary forms of Fiat News used to win the Game of You.

Read more

The Upside Down

By Ben Hunt | July 9, 2019 | 1 Comment

Everything is topsy-turvy in the Upside Down of Stranger Things. That’s the Big Baddie in the picture above, known as the Mind Flayer.

Financial media is a Mind Flayer, too, especially when it comes to coverage of crypto and tech companies.

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Raking it in

By Rusty Guinn | July 8, 2019 | 0 Comments

A few months ago, we noted how important it had become for public figures and corporations to control their own cartoon, lest someone control it for them. Well, now that advice has itself become the narrative. Don’t say you weren’t warned.

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Here We Go Again

By Ben Hunt | July 2, 2019 | 1 Comment

“You just recently hours ago met with the Chinese president, Xi Jinping,” Carlson said. “Are you closer, do you think after that meeting, to a trade deal?”

“I think so,” Trump replied. “We had a very good meeting. He wants to make a deal. I want to make a deal. Very big deal, probably, I guess you’d say the largest deal ever made of any kind, not only trade.”

He just can’t help himself. And neither can we.

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The Solution To The Fintech IPO Shortage

By Rusty Guinn | July 1, 2019 | 0 Comments

There’s a narrative that exists in Fintech that isn’t really present in most other early stage technology businesses. It defines why they’re different, who succeeds and who fails at getting to a liquidity event and a long-term growth trajectory.

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