The Zeitgeist – 4.10.2019


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.

April 10, 2019 Narrative Map – US Equities

In Puerto Rico, Building a Disaster-Proof Business Is Part of Recovery [New York Times]

Wait … an article about Puerto Rico that’s not about tax shelters or bond defaults or crappy local government or Trump idiocy or crypto bros? … an article that’s about entrepreneurship and the sort of small businesses that are the life blood of a vibrant local economy? What the hell, New York Times?

Also, thank you.

Forget real estate – ‘art flipping’ is the latest way rich millennials are building wealth, and it’s an investment baby boomers largely ignored [Business Insider]

The most interesting part of this utterly non-interesting filler article, the type of article that makes me yearn for a “contributor” story where I can at least belittle the author, is the use of the word “millennial”.

I counted 24.

The separate hyperlink to “rich millennials” as opposed to just plain old “millennials” gives it away. These are invitations for rage engagement, where readers who just can’t wait to mock “rich millennials” go for a quickie.

It’s all part of the Game of You.

PagerDuty seeks $1.69 billion valuation in its upcoming IPO and raises its price range, even as Lyft falters on the public markets [Business Insider]

Another gem from BI today … these mythical “concerns” that Lyft might just “bring the whole market down” is a classic example of how financial media intentionally builds a wall of worry in order to create a “problem” that can be “solved”.

Walmart is doubling down on robot janitors. Here’s why [CNN]

The actual article here is pretty boring … all about how Walmart is rolling out 900 giant robots to mop the floors at facilities … so I thought I’d use this space to celebrate Mr. Handy from Fallout, a boon companion if there ever was one.

My strong sense is that Rusty plays a cooperative game of Fallout 4. You know … building workshops, protecting the good folk of settlements throughout the Commonwealth, joining the Minutemen … that kind of stuff.

Not me. Some men just want to watch the world burn.

The Deadbeat Billionaire: The Inside Story Of How West Virginia Gov. Jim Justice Ducks Taxes And Slow-Pays His Bills [Forbes]

As Above, So Below

That’s the tag line for the Epsilon Theory note that’s a manifesto for my life as a citizen – Things Fall Apart (Part 3) – Politics. Here’s the money quote.

“As Above, So Below” means that our social lives are organized as a fractal, that when there is disorder in the heavens or the seats of worldly power, so is there disorder in our communities, our families, and our personal lives. It means that when Pharaoh hardens his heart, whether he lives in a marble palace on the Nile or a white house on the Potomac, so do OUR hearts harden, as well.

It means that the widening gyre, which we can see represented most clearly on a national scale and in national elections, is no less potent and no less present in our everyday lives. It means that Things Fall Apart in ways both large and small. Always and in all ways.

How does Trump break us?

By emboldening human Grendels like freakin’ Jim Justice to crawl out from their Oligarch caves.

They’re everywhere now, at every level of social organization. They walk among us openly and celebratedly. As if they own the place.

Which they will if we let them.

Beowulf’s secret? A strong right arm is a good start, but it’s clear eyes and a full heart for the win.

And one more thing …

This is a great article by Chris Helman (@chrishelman), and it frankly makes me even angrier at Forbes for publishing their “contributor” and “brand partner” drivel so hard, because it detracts from the truly original work that professionals like Chris create for Forbes. Thanks for writing with clear eyes and a full heart, Chris!


The Daily Zeitgeist

The Only Winning Move

By Rusty Guinn | July 19, 2019 | 2 Comments

It’s privacy and big tech again in today’s Zeitgeist, which is all about mutually assured surveillance. And for Epsilon Theory, it hits home. I think it will hit home for you, too.

Read more

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.

Read more

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.

Read more

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When can we expect the Epsilon Theory mock draft? Will it be a dualing mock draft like Mel and Todd? Will there be trades? The people want it, and dammit, they deserve it!

Rusty Guinn

Ben is such a Bama homer, he’d be sending in the cards for draft-ineligible true sophomores by the end of the 1st round!


As would half the NFL GMs.

Sean Garman
Sean Garman

The art article is interesting because it is a perfect example of “what” is happening but not “why”. Wealthy millennials are buying art (in my view) because they have observed their already-wealth parents purchasing pieces of art, which then appreciate in value, and they believe it will continue to appreciate.

This is not necessarily “smart” investing, but rather people acting out the “greater fool” theory. Children who have been exposed to the art world have a better view on the emerging artists and can purchase average works from average artists (if I can assume the future contours of the art world) and can easily flip it to the new rich who have not been exposed to the art world. This works until no one buys.


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