Wednesday, July 15, 2020

US Economy: The No-Fly Zone

If the US economy is bouncing back strongly, how come air travel is not?  The chart is from data by the TSA, and shows passenger traffic down 75% from 2019 levels.

IMHO, the “bounce” is mostly wishful thinking stoked by an absurd stock market bubble feeding on the self same wishful thinking in circular fashion.

Two similes:  The Emperor’s New Clothes (the market is strutting around naked) and The Chicken Game (whoever blinks first could possibly survive).  Both lead to the conclusion that if and when the mood changes - and it could change in a flash - the move down could be a crash unlike any in the history of US markets.

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