#Biden2020

Way to go, Joe! If you vote for Trump, “you ain’t black”

Joe Biden just keeps the gaffes going.

On Friday morning the former VP said, that if black Americans are unsure whether to support him over Trump in the November 2020 election, “then you ain’t black.

Such is the scourge of identity politics within the ranks of the Democrats that Biden is not the only one to think that minorities aren’t entitled to individual thought. Democrat Congresswoman Ayanna Pressley (of The Squad) infamously said during the Trump “shith*le country” saga,

We don’t need any more brown faces that don’t want to be a brown voice. We don’t need black faces that don’t want to be a black voice. We don’t need Muslims that don’t want to be a Muslim voice. We don’t need queers that don’t want to be a queer voice.

How quickly The Squad (AOC, Pressley, Tlaib and Omar) denounced America’s treatment of minorities when it was that very system that enabled them to attain public office at the highest level.

Essentially, they hold on to the tenet of telling constituents to shut up and conform to the stereotype of their minority status so it can be exploited. Funny how the supposedly racist Trump has done more for black Americans in economic and employment terms before the pandemic than any Democrat preceding him.

Biden, Pressley and other like them behave like the very racists they condemn.

Biden later apologized on a call with the Black Chamber of Commerce, “I should not have been so cavalier. I’ve never, never, ever taken the African-American community for granted…I shouldn’t have been such a wise guy.”

Bernie Sanders finally creates value

SPX

Democratic Party hopeful Bernie Sanders announced overnight that he is dropping out of the presidential primaries. For the first time ever, his actions actually led to substantial wealth creation, sending the S&P500 up 3.4% on a $21 trillion market cap index.

All jokes aside, we thought markets have found a (short-term) bottom. S&P has reclaimed almost half of the peak since the corona-crash. We question the sustainability of this rally. At the moment the trend is our friend. We pointed out that the kitchen sink would be thrown and provide one last hurrah before the realities of businesses coping with a return to business played out.

As the lockdown continues, it is very hard to determine what the actual prints will be for large-scale macro-economic data and where that fits into expectations. We know that the Fed has already been out hosing the credit markets with promises of unlimited QE.

The housing market is already giving us hints. According to the Mortgage Bankers Association’s (MBA) Forbearance and Call Volume Survey, the total number of loans in forbearance grew from 0.25% to 2.66% from March 2 to April 1, 2020, with mortgages backed by Ginnie Mae seeing the largest growth (from 0.19% to 4.25%).

While not strictly an apples for apples comparison, the Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, Top 100 Banks Ranked by Assets peaked at 12.89% in 2010.

Plenty of trouble ahead. The market complacency is quite astonishing.