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Daily Missive

The Hoover Boom

Loading ...Bill Bonner

November 12, 2024 • 3 minute, 42 second read


electionmarket rally

The Hoover Boom

As democracy is perfected, the office of the President represents, more and more closely, the inner soul of the people. On some great and glorious day, the plain folks of the land will reach their heart’s desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.

H.L. Mencken

A week has passed since Donald J. Trump was re-elected president.  The stock market has celebrated with the most impressive run-up since Herbert Hoover was elected.   Hoover was a take-charge kind of guy too.  “For six years, that man has been giving me unsolicited advice,” remarked out-going president Calvin Coolidge, “all of it bad.”

But Hoover was elected in 1928.  Thereafter, stocks rose a spectacular 40%, before crashing in 1929.

Since the election results were announced last week, one third of the country has been overjoyed, whooping and hollering, sure that happy days are here again. Another third acts as if it were looking at the Reichstag Fire. And the final third gets out the hotdogs and marshmallows.

The poor Democrats have gnashed so many teeth, it is amazing they have any left. This time, they lost by such a big margin the familiar excuses — Russian interference, misinformation, bad luck — just don’t seem to be enough. This time, the Trump victory tells us “who we really are,” says a recent New York Times headline.

Yes, we are a nation of dumbbells and dreamers… neither always good, nor always bad… but always subject to influence.  And when ‘the plain folks’ speak, they don’t necessarily say what the elites want to hear.

But here at BPR, we emphasize the positive. It is a shame Americans elected Donald Trump. But it’s a good thing they didn’t elect Kamala Harris. And some other good things have come out of the experience.

For one, the benevolent expertise of the elites as channeled by their propaganda media has been thoroughly discredited. The Wall Street Journal:

Trump’s Win Cemented It: New Media Is Leaving the Old Guard Behind

The old media — TV, newspapers, magazines — were overwhelmingly behind Ms. Harris. She had the support of the whole Elite Establishment — the press, the universities, Hollywood and the DC establishment. One study showed that 80% of the news coverage on Trump was negative. And yet, the public seemed to pay no attention.

The legacy media also clung to themes that favored Harris over Trump. One was the idea that ‘our democracy is in danger.’ Donald Trump was supposed to be a ‘fascist’ and should he win, or so went the line of argument, it might be the last election in America.

They held steadfast to the idea of the January 6th ‘insurrection,’ too, when any fool could see that the middle-aged dopes milling around the Capitol building were no threat to the police power of the empire.

They insisted that the Covid was an ‘existential threat,’ and not just another flu. Again, the evidence told a different story.

And they even wanted to change the English language to accommodate their woke-ish fads; the ‘him’ or the ‘her’ was replaced by the fake gender-neutral plural, ‘them.’

And while they were adamant about not offending someone’s tender sensibilities by using the wrong pronoun, they were nevertheless eager to send US-made bombs overseas… so the killing of the hes, shes, and thems could continue apace.

These absurdities attached themselves to Ms. Harris like ticks to a dog. She represented the Powers-That-Be….the ‘system’ that had saddled the nation with $36 trillion in debt, and made America’s rich richer than ever…but not given the working class a real raise in half a century.  It was this ‘system’ that ‘the plain folks’ despised.  And what could Ms. Harris say, but ‘vote for me; I’ll give you more of it.’

So, it turned out that the real threat to democracy was not the MAGA crowd. It was democracy itself. The ancient Greeks warned us about it. Allowing the masses to choose a leader is always a threat to the health of the nation.  And in the election of 2024, it gave us the choice between cholera and the plague, Trump or Harris.

Voters washed their hands and tried their best to avoid getting sick. But most felt a patriotic duty to run a fever… for one or the other. And since they couldn’t stomach any more-of-the-same from Kamala, they crossed themselves and pulled the lever for Trump.


Socialist Economics 101

August 28, 2025 • Lau Vegys

When we compare apples to apples—median home prices to median household income, both annualized—we get a much more nuanced picture. Housing has indeed become less affordable, with the price-to-income ratio climbing from roughly 3.5 in 1984 to about 5.3 today. In other words, the typical American family now has to work much harder to afford the same home.

But notice something crucial: the steepest increases coincide precisely with periods of massive government intervention. The post-dot-com bubble recovery fueled by Fed easy money after 2001. The housing bubble inflated by government-backed mortgages and Fannie Mae shenanigans. The recent explosion driven by unprecedented monetary stimulus and COVID lockdown policies.

Socialist Economics 101
Nvidia, Buybacks, and the Market’s Blind Faith

August 28, 2025 • Addison Wiggin

It’s hardly a secret that the national debt has surpassed $37 trillion.

This morning, the Peter G. Peterson Foundation, released a survey showing 79% of Americans say they are deeply concerned about the fiscal outlook, across party lines. The Fiscal Confidence Index sits at 49 — well below neutral.

The public sees what the market ignores: pressure on interest rates, inflation risk, and a government living beyond its means.

Nvidia, Buybacks, and the Market’s Blind Faith
Andrew Zatlin: Time for an AI Pause?

August 28, 2025 • Addison Wiggin

Yes,  growth is slowing down. What can you expect when  you have 50% growth happening year over year over year?

At some point in time that stops.

We’re seeing the first signs of that with Nvidia reporting a slowdown in AI server revenues – but that’s hardly reflected in the market price yet.

Andrew Zatlin: Time for an AI Pause?
Andrew Zatlin: Trump’s Battle with the Phantom Economy

August 27, 2025 • Addison Wiggin

So right now, jobless claims are in a sweet spot that coincides with a pretty decent economy, 225,000 plus or minus.

Why are they hovering so low? And the reason I believe has to do with fear of deportation.

I believe that the Hispanic community is not applying for the jobless benefits that they’re entitled to because they are afraid of being deported. There are lots and lots of anecdotes out there of workers showing up at a government agency and being nabbed by ICE and being deported.

So rather than run the risk of deportation, these folks would rather run the risk of just not having as much money in their pocket from being eligible for jobs claims and not filing. Lemme explain by talking about California. In general, nationally right now, jobless claims are up about 10% year over year, except when we talk California, and that’s where everything signals under reporting.

Andrew Zatlin: Trump’s Battle with the Phantom Economy