As we made our way to the Sambadrome, we began to suspect that this was not going to be just like any other night out. Crowds filled the streets and sidewalks all over town.
We know Buenos Aires better than São Paulo. It is a prettier city. But less dynamic. In São Paulo you see new buildings, new cars and new restaurants almost everywhere you look. Buenos Aires doesn’t change so much. It is an older city – more elegant and more timeworn.
The Dow fell 101 points yesterday. Gold managed to climb back over $1,300 an ounce. But the important news was barely noticed. Of those who bothered to read it, few realized its significance. For the first time, oligarchs from North America and the steppes of Eurasia have teamed up to lie, cheat and steal together. The Wall Street Journal reports: Vice President Joe Biden’s son and a close friend of Secretary of State John Kerry’s stepson have joined the board of a Ukrainian gas producer controlled by a former top security and energy official for deposed President Viktor Yanukovych. […]
Not much action yesterday – neither in stocks nor in gold. We’re back from South America. We’re toughened up. But we’re more puzzled than ever. Our horse threw us last week. Maybe that addled our brain. It certainly toughened us up a bit more. But then we learned about the hard life of the poor cattle… High in the mountains there are pastures. Cattle live there – almost wild. They are the cattle of the local people, but they are so tough they are nearly unsaleable. And they barely survive anyway.
The facts just get curiouser and curiouser. Yesterday, the Fed continued its “taper” of QE – knocking $10 billion off its monthly bond buying. Thus does the biggest investor in the world – one with bottomless pockets – continue to exit the market. Meanwhile, yesterday’s US GDP report showed that Thomas Piketty’s g is almost dead, just as he predicted. Last quarter, the US economy grew, in inflation-adjusted terms, at an annualized rate of just 0.1%. You can blame the weather. Or whatever you want. But you’d think this combination of news events would give investors pause… or fright. Instead, they seem to