Facing Down America’s Myths and Legends

Posted on April 17, 2020 by MN Gordon

[Editor’s Note: We are social distancing from a remote mountain cabin in the shadow of Tahquitz Peak.  The secluded locale first inspired today’s Economic Prism, which was originally published on March 30, 2018, as Searching for Tahquitz.  There are ample insights to America’s present war on coronavirus found within.  So we’re dusting it off and republishing it.  Enjoy!]

Myths and Legends in America

Each generation is disposed to its own unique myths and legends.  Perhaps an absence of prior experience is what compels the younger generation to pick up the torch of popular delusion, regardless of whether it’s pure madness.  The older generation, on the other hand, may have garnered false expectations through a lifetime spent living in a world that no longer exists.

“Myths and legends die hard in America,” remarked Hunter S. Thompson in The Great Shark Hunt nearly 40 years ago.  No doubt, Thompson’s insight holds true today.  There is an abundance of myths and legends in America today… all bound for a hard death.  A partial listing includes: Continue reading →

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Will Everything be Awesome for SoFi Stadium?

Posted on April 10, 2020 by MN Gordon

The property adjacent to the northeast intersection of South Prairie Avenue and Century Boulevard, in Inglewood, California, has undergone a staggering facelift over the last three years.  The former Hollywood Park Racetrack was demolished and regraded.  SoFi Stadium, at a price tag of $5 billion, is being constructed in its place.

The new home of the Los Angeles Rams and Los Angeles Chargers is scheduled to open in late-July 2020.  That’s when an initial christening will be performed by Taylor Swift.  Then it will be time for the 2020 NFL season.

Obviously, there are big plans for this property.  Per the Sofi Stadium website:

“The state-of-the-art stadium re-imagines the fan experience and will host a variety of events year round including Super Bowl LVI in 2022, the College Football Championship Game in 2023, and the Opening and Closing Ceremonies of the Olympic Games in 2028.  Located on the site of the former Hollywood Park racetrack, the stadium is the centerpiece of a 298-acre mixed-use development featuring retail, commercial office space, a hotel, residential units, and outdoor park spaces.” Continue reading →

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The Upside of The Great Depression of the 2020s

Posted on April 3, 2020 by MN Gordon

“The bank is something more than men, I tell you.  It’s the monster.  Men made it, but they can’t control it.” – John Steinbeck, The Grapes of Wrath

Mass Dollar Debasement

The monster of all monsters is rampaging far and wide.  The Federal Reserve, the central bank responsible for issuing U.S. legal tender notes, is going big.  But its aim is small.

The Fed’s working 24/7 with singleness of purpose.  Fed Chairman Powell’s applying what Minneapolis Fed President Neel Kashkari recently called “infinite cash” to the financial system.  The sole purpose is to destroy the dollar to save it.  The stakes are high.  The odds are higher.

The greatest asset bubble in human history, a bubble that was inflated by the Fed’s endless supply of cheap credit, has popped.  At the same time, coronavirus containment measures have collapsed the economy.  The forthcoming cascade of job losses, bankruptcies, oil gluts, and economic destruction could far exceed the Great Depression of the 1930s. Continue reading →

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Boeing’s Bean Counter Culture and Mass Financialization

Posted on March 27, 2020 by MN Gordon

“We’re not letting Boeing go out of business.” – Donald Trump, President USA

Something Stinks

On Tuesday, in anticipation of several trillion dollars of Congressional pork, the Dow Jones Industrial Average (DJIA) rallied 11.37 percent.  This marked its best day since 1933.  Some Dow 30 stocks did much better.

For example, Chevron was the top performer; closing up 22.74 percent.  American Express, which increased 21.88 percent, was a close second.  But do you know what company came in third?

None other than the posterchild for corporate financialization and cronyism: Boeing.  The company closed up 20.89 percent.

By all honest metrics, Boeing is circling the toilet bowl.  On Tuesday, for example, Fitch cut Boeing’s credit rating to BBB.  And according to Bill Ackman, head of Pershing Square Capital Management, “Boeing is on the brink [and] will not survive without a government bailout.” Continue reading →

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