"Our basic trouble was not an insufficiency of capital.It was an insufficient distribution of buying power coupled with an over-sufficient speculation in production.  

Do what we may have to do to inject life into our ailing economic order, we cannot make it endure for long unless we can bring about a wiser, more equitable distribution of the national income.” 

Franklin D. Roosevelt, 1932 

The bubble momentum trade in financial assets was getting crowded and overdone. 

The mavens of the markets tried to shake off the hangers-on yesterday, but Jay Powell nixed their plans with his happy talk. 

So today the captains of Wall Street called for a down bubble, emergency deep.  

Time to take out the garbage. Scrape the hull.  

The challenge the financiers presented to the Fed showed up in the yields of the longer-dated 5+ Treasuries and curve. 

Despite the selling, the Dollar tread water very nicely just above 90.

VIX went north.

A grand wash day. 

What will Chairman Jay and his banker buddies do next in response? 

Or is this just another episode of kabuki theater among financial friends?

Let's see what comes out in the rinse. 

Have a pleasant evening. 

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