Home sweet home

What’s happening?
Every place in our small village is fully packed with people, but tour operators announced a plunge of bookings around 15%.
All those pubs and restaurants are overcharged with people staying home for the holidays. Not only because the weather is very fine, but also because spending habits are changing.

Funny thing I read elsewhere – coming from CBS Channel 2 Chicago:

The City of Chicago is basically closed for business on Aug. 17, a reduced-service day in which most city employees are off without pay. City Hall, public libraries, health clinics and most city offices will be closed.
Emergency service providers including police, firefighters and paramedics are working at full strength, but most services not directly related to public safety, including street sweeping, will not be provided.
That also includes garbage pickup...

The message is clear: in the US local authorities and cities are running out of money. This will result in higher taxes. And less consumption. Be prepared.

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Holidays

Hi - I am on holidays. Back on Monday. Enjoy Sphere: Related Content

Illiquidity

Stocks seem still to be in a correction. We think this can go on a little longer, before the tide turns. We agree with what Dennis Gartman is writing:

…we should also remember, however, that in the course of the past several decades, the most violent market movements have tended to come in late July and early August just precisely because the dealing rooms are emptier. Illiquidity during times of political duress can create its own problems, and we remember the Russian problems of August of a decade ago, and the problems attendant to LTCM that evolved out of that earlier crisis. These were “summer” crises, and there have been others, so just because the doldrums have set in does not mean that they are permanent, and that they cannot develop into something far more unstable. They can; they have and they will… we simply know not when.

But where a lot of people thing that we are looking into the abyss, I wouldn’t bet against a kind of sharp rally.
Be careful out there…

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