Tax Receipts vs. the Stock Market
Following the US Treasury’s update of April tax receipts, our friend Mac mailed us a few charts showing the trend in corporate tax payments. Not surprisingly, corporate tax payments and refunds mirror the many signs of a slowing economy that have recently emerged. An overview in chart form follows below. First up, corporate tax receipts in absolute figures.
Corporate tax receipts in absolute dollars and cents – this is quite astonishing considering that the amount of money in the US economy has increased by roughly 125% since early 2008. Corporate taxes by contrast haven’t even made it back to the 2007 peak.
The first round of our IV crush earnings plays was a resounding success and as there’s about a week’s worth of announcements left in this quarter we are pumped and ready for a second helping.
The next round of Operation Vega Crush begins
Photo via artcarcentral.com
After spending three weeks with objective truth at the ranch, we are now forced to return to the world of myths, delusions, and claptrap. Yes, we are in Buenos Aires looking at a TV!
And there they are… talking about the world of politics, money, culture… the world of Facebook and CNBC… of Trump and Clinton… of ZIRP and NIRP… and of Game of Thrones.
The royal seating accommodation fought over in “Game of Thrones”. It looks decidedly uninviting – a literal pain in the a**, you might say. High political office strike us as very similar in this sense, so the iron throne actually works quite well as a symbol. We have often wondered why anyone would want to have a job the main purpose of which is to meddle in the lives of other people against their will. What could possibly be more off-putting?
Photo credit: HBO
Europe’s Political Class Under Fire
All over Europe not only religious and national holidays are observed, but also a socialist holiday, which we always thought was a bit strange – and in a way quite telling (as far as we know, there is no holiday celebrating the free market). Traditionally the rank and file comrades tend to gather around their leaders on May Day, waving their party-approved banners and dutifully applauding at the appropriate moments. Not anymeure, as Clouseau would say.
The sign says: “Lying press, system of lies, scandal” – in Germany these demonstrators are somewhat condescendingly referred to as “Wutbürger” in the mainstream press (i.e., “angry citizens”). The term essentially implies that while they’re momentarily irate, they have no plan anyway, and can be expected to calm down again soon enough. This seems to have succeeded in making them even more angry.
Photo credit: IMAGO
Pros and Cons
The recent rally in commodity prices has surprised many market participants and has greatly supported the stock market’s rebound. It has also made bulls out of a number of former stock market bears, as one of its side effects was to cause an improvement in market internals. But does the rally actually make sense?
The original Bethlehem Steel Works in Bethlehem, Pennsylvania.
Photo via leggendaurbana.it
Operation Volatility Crush – Post Mortem
[ed note: this is a follow-up to “Let’s Crush Some Volatility”, penned by the aptly named Ray the Options Executioner for the Evil Speculator]
Our introduction to earnings-based options strategies has started off with a bang. Actually, it’s hard to imagine a much better results for our first option campaigns. Granted, we’ve been doing this stuff behind the scenes for a while, and we expected the options strategies in FB and FSLR to succeed. Still, you gotta love when what happens is pretty much exactly what you predicted.
Photo credit: musictory.de
While checking on the US primaries a few days ago, we came across a piece of news informing us that pretend candle-swallower Ted Cruz had picked Carly Fiorina as his “vice-presidential running mate”. Our first thought upon hearing this was “WTF”?
The match made in heaven… two loooosers find each other.
Photo credit: AP
Damned If You Do…
After waking up on Thursday, we quickly glanced at the overnight market action in Asia and noticed that the Nikkei had tanked rather noticeably. Our first thought upon seeing this was “must be the yen” – and so it was:
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