Yesterday, Wall Street was shocked by the first quarter of negative subscriber growth for their FANG darling Netflix. Why be surprised? It wasn't that hard to see the future of the corporate communists, that is, if you live in reality and not the 'woke bubble'.
We wrote on these pages exactly one year ago about the future demise of the Marxist Obama fanboy streaming service.
We find the excuses being given very similar to those spouted by the NFL, NBA, who refused to admit anti-American behavior contributed to their viewership collapse over the recent time frame, we wrote in April of 2021.
Wall Street says ‘everything’s fine’ for Netflix.
We don’t think everything’s fine. The Deplorables have had enough. But you can’t say this on Wall Street.
When you peddle satanist garbage, people leave, at least God-fearing people do.
Grooming children, satanism, Marxism and as Elon Musk says, "The woke mind virus", don't sell it seems.
The same future awaits all of the regime's media apparatchiks like Disney, New York Times, Washington Post, CNN, etc.
You can also throw in major-league sports, China-enabling big box retailers, go down the list.
Speaking of lists, we put out the 'Freedom or Control List' after the 2020 election. It's a good starting point for future purchase choices.
The American people have had enough, and will vote with their pocket book, while simultaneously working to take back their elections, and their country.
Wall Street -- you ain't seen nothing yet!
Your analysts should be fired, or maybe we start a new Wall Street too...
We have written often how amazing it is to watch big-tech Silicon Valley literally destroy its customer base over the last few years. Facebook, Twitter, Google, LinkedIn, etc have all gone full communist censorship and literally forced half the country off of their platforms, never to return.
Now the MySpace chickens are coming home to roost.
Last Friday, Facebook (Now called Meta) fessed up to the inevitable and reported its user base in the United States was down 1M in the fourth quarter. Most of the company's advertising revenue comes from North America.
The stock dropped approximately 23% after the Friday close.
What the other half of the American population needs to understand is that these platforms, while originally designed to be helpful in life, and to connect to others, are now nothing more than surveillance and censorship, working with the Chinese Communist Party killers to destroy our republic.
Although revenue was reported still strong for Meta for the 4th quarter , what Wall Street scrutinizes closest is growth, and the company formerly known as Facebook (FB) has now jumped the MySpace shark.
Facebook has been accused of harvesting facial data for facial recognition, promoting pedophilia and human trafficking, and medical tyranny.
A movement is now growing where users are deleting their profiles and moving to a myriad of other viable platforms.
"Black Friday" has quickly mutated into red Friday for markets, where panicking traders sell first and only ask questions later if at all. So for those who are too pressed for time to read out primer on the "Scared Nu World", but want to catch up to speed on consensus, here is a snapshot of analyst kneejrek reactions to the market's latest obsession.
Barclays - Emmanuel Cau
“With many equity markets at an all-time high, thin year-end liquidity and Covid cases up again, a pull-back seems logical,” says strategist Emmanuel Cau
“We have advised a more barbell sector allocation and downside hedges at these levels, but we believe resilient growth and patient central banks should continue to provide cushion on a medium-term horizon, while investors have dry powder to buy dips”
“What is key is to find out whether current vaccines remain effective against the variants, or not. Covid uncertainty might force central banks to err on the side of caution...”
We know our China Uncensored viewers care about China, and they probably also care about their money, and their money not going to China. In this episode, we interview Perth Tolle, the founder of the Freedom 100 Emerging Markets Index, which is an index weighted to freedom that doesn't have China in it at all. She explains how Wall Street forces investors to put their money into China, and, despite the incredible risks and low returns, why it's still doing that, writes China Uncensored.
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Over the past few months, the Chinese Communist Party has been cracking down on tech companies. If you're one of those people who are trying to read the tea leaves, you may be confused as to what kind of message the Chinese Communist Party is trying to send with these crackdowns. Watch this episode of China Uncensored for the regulatory drama playing out behind closed doors, what the communist party leadership has to do with this, and how investment banks are responding to it all, writes China Uncensored.
The Global Media Company Funded By The Common Man! You Won't Get Anywhere Else What You Get From CDMedia! Donate!
With Chinese stocks in free fall, it was only a matter of time before Hayman Capital founder Kyle Bass - one of Wall Street's most vocal critics - showed up to say 'I told you so'.
And so, with Chinese stocks in free fall, Bass appeared for an interview with CNBC on Tuesday to warn that it's "impossible to discount" all the risks associated with investing in Chinese companies. Because now those risks aren't limited to corporate malfeasance (like what happened with Luckin Coffee) but investors are now shouldering political risks that are "impossible to discount", Bass said. Since Didi doesn't have any assets in the US, ultimately, it will be the fund managers who decided to invest in the company who will likely face the legal repercussions. After all, they should have known better.
"Even Stevie Wonder could see what's going on...it's easy to see, once you understand the fundamental ideology of China, all of the things that are happening today are impossible to discount, they're easy to see coming. Chinese companies won't submit themselves to audits...now you have to pay Xi Jinping risk. How can you pay a multiple...will all that risk in front of you. This is going to be a panacea for lawyers when they start bringing lawsuits against fund managers...there is no defense for a fiduciary who invests in China today," Bass warned...
Host L Todd Wood talks with Col John Mills (USA, Ret) on the current behavior of active duty and retired flag officers in their refusal to support freedom and oppose the Maoist rebellion being stoked in DoD.
You can find Col Mills at @ColonelRETJohn on GETTR and GAB and Daily Missive on Telegram.
Wall Street works on future expectations of growth. Therefore, spin on future growth becomes important for one's stock price.
The spin machine went into overdrive yesterday as Twitter tried to cloak a massive drop in user growth from 'America Firsters' leaving the platform in droves, calling it a 'pandemic-related' issue.
“Looking ahead, the significant pandemic-related surge we saw last year creates challenging comps, and may lead to [monetizable daily active usage] growth rates in the low double digits on a year-over-year basis,” Twitter said in its earnings report.
The platform warned that the low point in growth will likely be in the second quarter, reported The Hill.
We have been writing frequently about our belief that the Silicon Valley heavyweights, those involved in the massive censorship (an Information Operation) over the last decade, have peaked. Their best days are behind them. Americans don't want to be censored. They want to speak freely.
Twitter silenced a president duly-elected by the American people. Very simply, that is not okay, and they are voicing their anger with their feet, as they move to the plethora of new social media available to them.
Populists are building a new economy, and social media is at the vanguard of this movement, to get away from 'woke capital'.
In the past few years, Twitter has been moving from reporting 'user growth' on a regular basis to a new metric of 'monetizable daily active usage.' They will most likely be able to pick up a lot of low-hanging advertising fruit to juice revenue off of a loyal following in coming quarters, but the simple truth is people are leaving Twitter in massive numbers.
At some point Twitter, and Wall Street will have to acknowledge they have committed economic suicide, by alienating half their audience.
Populists believe starving the corporate oligarchs is the best path forward to preserving the republic.
If there is anything Wall Street banks crave is relief. Primarily relief from the potential for failure and, next, relief from holding much, if any, equity capital. These banks like their capital tiny and their profits huge. Losses should be socialized. After all, we want the ATMs to keep spitting out cash.
The SLR will be allowed to expire at the end of this month before most of us knew what it was—"supplementary leverage ratio." When covid hit the fan last March, as the WSJ explains, “The ratio measures capital—funds that banks raise from investors, earn through profits and use to absorb losses—as a percentage of loans and other assets. Without the exclusion, Treasurys and deposits count as assets [not equity].”
No SLR means less leverage and lower profits for the big banks. But, the Federal Reserve must be careful, the yield on the US ten-year note has exploded to 1.72 percent.
Not everyone would see it this way, however, Larry McDonald, who publishes the Bear Traps Report, told Ed Harrison on Real Vision, over the “last 10 years, just about everything they've [The Fed] done from a monetary point of view has been deflationary.”
He continued, “The problem is there's 64 trillion of GDP outside the United States, 20 trillion in and the amount of global debt on the planet Earth is denominated in dollars, especially in EM [emerging markets] countries, it's at least 13 trillion, 15 trillion bucks.”
Sixty percent of global trade is in dollars.
You may think, rates are still very low, however, McDonald explained, “a 50 basis point move today in yields relative to 10 years ago wipes out literally the entire budget of the marines, the navy and the army. In other words, because there's so much debt today relative to 10, 15 years ago, a small debt, a small move in yields, 50 basis points in yields today is equivalent to 2% 15 years ago.”
Oh, that is a problem. Plus, the world is awash in dollar-denominated debt. McDonald continued, “[B]ecause of the amount of duration risk, so all these pensions, you've had literally close to 110 trillion, 120 trillion of bonds on the planet Earth is below, say, 1.75%. You just have a ton of pension bonds, a ton of wealth that a 50 basis points, 1% move up in yields, number one, it bankrupts the US in terms of your budget right now.”
Bankruptcy? “70% of the budget in the United States is entitlements and interest, so you just can't afford a big move up in yields there,” McDonald said. “Then on the global side, you will blow up pensions around the world because so much wealth is in lower yielding bonds.”
So what’s a Fed to do? Christopher Whalen tweeted today, “Yikes … Tapering is next folks.” Or is it? McDonald makes the point that with the $1.9 trillion rescue bill starting to hit bank accounts and possibly more coming in the name of infrastructure, “[t]hat's why the central bank gets asset purchases from the Fed, the certainty of that is so important, because you can't taper into a $4 trillion bond sale problem. The Fed has to offer more certainty there.”
Fed chairman Powell did not play tough guy this week. He’ll keep his rate at zero until 2023 and no matter what will keep his foot on the monetary gas until employment rates improve. No mention of yield curve control, QE, or operation twist 2.0 was made.
“The serpent in the market, the beast in the market, will push him and push him until they break him again,” says McDonald. “They've broken the Fed four or five times since 2013. It's going to happen again, but just think this time, the Fed is going to be more proactive. If the Fed doesn't give the serpent enough, doesn't give that piece in the market enough, they will push and then break the Fed in the next two meetings.”
Banks pressed for an extension of SLC, believing without it banks might buy fewer Treasuries, adding to the upward pressure on bond yields that has rattled markets in recent weeks.
“The banks are sitting on giant stockpiles of cash, U.S. government debt and other safe assets,” writes Andrew Ackerman. “By tweaking how the ratio is calculated last year, the Fed was effectively trying to engineer a swap” with banks lending to consumers and businesses instead of the government. But, bank loans increased only 3.5 percent, the slowest pace in seven years.
The Fed has always had the banks to keep afloat. Now, the solvency of the entire US government rests on Jerome Powell’s shoulders, with no margin for error.