MAGAnomic Policy Interacting With Financial Systems – Multinational Wall Street vs Main Street U.S.A…

Originally outlined a year ago. Reposted by request:  Remember, at the heart of the professional opposition the issue is the money; there are trillions at stake.

President Trump’s MAGAnomic and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each policy objective; they have been outlined for a long time even before the election victory in November ’16.

If you get too far into the weeds the larger picture can be lost. CTH objective is to continue pointing focus toward the larger horizon, and then at specific inflection points to dive into the topic and explain how each moment is connected to the larger strategy.

Today we repost an earlier dive into how MAGAnomic policy interacts with multinational Wall Street, the stock market, the U.S. financial system and perhaps your personal financial value. Again, reference and source material is included at the end of the outline.

If you understand the basic elements behind the new dimension in American economics, you already understand how three decades of DC legislative and regulatory policy was structured to benefit Wall Street and not Main Street. The intentional shift in fiscal policy is what created the distance between two entirely divergent economic engines.

REMEMBER […] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

Investments, and the bets therein, needed to expand outside of the USA. hence, globalist investing.

However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.

As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.

When Main Street was purchasing the legislative influence the outcomes were -generally speaking- beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.

When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global”.  Global financial interests, multinational investment interests -and corporations therein- became the primary filter through which the DC legislative outcomes were considered.

There is a natural disconnect. (more)

As an outcome of national financial policy blending commercial banking with institutional investment banking something happened on Wall Street that few understand. If we take the time to understand what happened we can understand why the Stock Market grew and what risks exist today as the financial policy is reversed to benefit Main Street.

President Trump and Treasury Secretary Mnuchin have already begun assembling and delivering a new banking system.

Instead of attempting to put Glass-Stegal regulations back into massive banking systems, the Trump administration is creating a parallel financial system of less-regulated small commercial banks, credit unions and traditional lenders who can operate to the benefit of Main Street without the burdensome regulation of the mega-banks and multinationals. This really is one of the more brilliant solutions to work around a uniquely American economic problem.

♦ When U.S. banks were allowed to merge their investment divisions with their commercial banking operations (the removal of Glass Stegal) something changed on Wall Street.

Companies who are evaluated based on their financial results, profits and losses, remained in their traditional role as traded stocks on the U.S. Stock Market and were evaluated accordingly. However, over time investment instruments -which are secondary to actual company results- created a sub-set within Wall Street that detached from actual bottom line company results.

The resulting secondary financial market system was essentially ‘investment markets’. Both ordinary company stocks and the investment market stocks operate on the same stock exchanges. But the underlying valuation is tied to entirely different metrics.

Financial products were developed (as investment instruments) that are essentially wagers or bets on the outcomes of actual companies traded on Wall Street. Those bets/wagers form the hedge markets and are [essentially] people trading on expectations of performance. The “derivatives market” is the ‘betting system’.

♦Ford Motor Company (only chosen as a commonly known entity) has a stock valuation based on their actual company performance in the market of manufacturing and consumer purchasing of their product. However, there can be thousands of financial instruments wagering on the actual outcome of their performance.

There are two initial bets on these outcomes that form the basis for Hedge-fund activity. Bet ‘A’ that Ford hits a profit number, or bet ‘B’ that they don’t. There are financial instruments created to place each wager. [The wagers form the derivatives.] But it doesn’t stop there.

Additionally, more financial products are created that bet on the outcomes of the A/B bets. A secondary financial product might find two sides betting on both A outcome and B outcome.

Party C bets the “A” bet is accurate, and party D bets against the A bet. Party E bets the “B” bet is accurate, and party F bets against the B. If it stopped there we would only have six total participants. But it doesn’t stop there, it goes on and on and on…

The outcome of the bets forms the basis for the tenuous investment markets. The important part to understand is that the investment funds are not necessarily attached to the original company stock, they are now attached to the outcome of bet(s). Hence an inherent disconnect is created.

Subsequently, if the actual stock doesn’t meet it’s expected P-n-L outcome (if the company actually doesn’t do well), and if the financial investment was betting against the outcome, the value of the investment actually goes up. The company performance and the investment bets on the outcome of that performance are two entirely different aspects of the stock market. [Hence two metrics.]

♦Understanding the disconnect between an actual company on the stock market, and the bets for and against that company stock, helps to understand what can happen when fiscal policy is geared toward the underlying company (Main Street MAGAnomics), and not toward the bets therein (Investment Class).

The U.S. stock markets’ overall value can increase with Main Street policy, and yet the investment class can simultaneously decrease in value even though the company(ies) in the stock market is/are doing better. This detachment is critical to understand because the ‘real economy’ is based on the company, the ‘paper economy’ is based on the financial investment instruments betting on the company.

Trillions can be lost in investment instruments, and yet the overall stock market -as valued by company operations/profits- can increase.

Conversely, there are now classes of companies on the U.S. stock exchange that never make a dime in profit, yet the value of the company increases. This dynamic is possible because the financial investment bets are not connected to the bottom line profit. (Examples include Tesla Motors and Amazon and a host of internet stocks.) It is this investment group of companies that stands to lose the most if/when the underlying system of betting on them stops or slows.

Specifically due to most recent U.S. fiscal policy, modern multinational banks, including all of the investment products therein, are more closely attached to this investment system on Wall Street. It stands to reason they are at greater risk of financial losses overall with a shift in fiscal policy.

That financial and economic risk is the basic reason behind Trump and Mnuchin putting a protective, secondary and parallel, banking system in place for Main Street.

Big multinational banks can suffer big losses from their investments, and yet the Main Street economy can continue growing, and have access to capital, uninterrupted.

Bottom Line: U.S. companies who have actual connection to a growing U.S. economy can succeed; based on the advantages of the new economic environment and MAGA policy, specifically in the areas of manufacturing, trade and the ancillary benefactors.

Meanwhile U.S. investment assets (multinational investment portfolios) that are disconnected from the actual results of those benefiting U.S. companies, and as a consequence also disconnected from the U.S. economic expansion, can simultaneously drop in value even though the U.S. economy is thriving.

♦The Modern Third Dimension in American Economics – HERE

♦How Multinationals have Exported U.S. Wealth – HERE

♦The “Fed” Can’t Figure out the New Economics – HERE

The FED Begins to Question the Economic Assumptions – HERE

♦Treasury Secretary Mnuchin begins creating a Parallel Banking System – HERE

♦Proof “America-First” has disconnected Main Street from Wall Street – HERE

This entry was posted in Big Government, Big Stupid Government, Donald Trump, Economy, Election 2018, media bias, President Trump, Trade Deal, Uncategorized, US Treasury, USA. Bookmark the permalink.

137 Responses to MAGAnomic Policy Interacting With Financial Systems – Multinational Wall Street vs Main Street U.S.A…

    • Professor Sundance had all this figured out two years ago

      Liked by 7 people

    • MM says:

      I don’t know how Sundance does this……
      He has a very busy mind and never miss’s a beat with keeping us informed….

      Liked by 9 people

      • Texian says:

        Sundance has “the mind” for it.. I worked with clusters of them on energy trade floors..

        I never grasped the whole concept of derivatives. I only made it to the trade floor because of my MS Excel ability. (Excel only – anything else I have no clue).

        They hired me to run one report – “It will take you eight hours to crunch the data..” By the end of the month I had Excel running it automatically within five minutes. I would roam the halls looking to help other analysts. My boss then said “I would like for you to meet the manager for our International Operations..”. My Excel programs then went worldwide..

        I remember one newbie analyst, poor guy, he was having to stay late and correct like 500 invoices manually.. I went back to my office and cobbled some things together in Excel, SAP, etc. I said “Let’s try this.. Just click that button..” In about ten minutes he was done.. (I really liked that one – I called it “Frankenprint..”).

        Liked by 9 people

      • Literally watch the Big Short. It will blow your mind. Most of what he mentions here is described in the movie but his is more Macro Economics vs. Housing Market (which oddly does the same thing).

        I think Sundance did an excellent job in describing this so the layman can understand. I highly HIGHLY suggest watching the movie. It will blow your mind and make you a little bit upset….but it will also educate you.

        Liked by 3 people

  1. fleporeblog says:


    Liked by 15 people

  2. Echo says:

    The Dow is up 31.5% in 16 months, not 18%.
    Normally a short signal, but with PDJT, maybe not.

    Liked by 3 people

    • MakeAmericaGreat says:

      “Originally outlined a year ago. Reposted by request”

      Old piece, put up once again. Data from when it was first posted.

      Liked by 7 people

    • Ditch Mitch says:

      Charles Payne has made that same observation for about 2 weeks now but continues to show fundementals that support your opinion that with PDJT maybe not.

      For overall economic performance Charlie has become my go to guy.

      Liked by 1 person

  3. wolfmoon1776 says:

    I knew that Wall Street was basically a derivative economy of the Main Street economy, but wow – now I realize, after reading this, that the “power grid” of the American economy can:

    (1) hook up to foreign markets through Wall Street,
    (2) be manipulated into foolishness AT ALL LEVELS by those markets, and
    (3) thereby DRAIN the Main Street economy while
    (4) thinking stupidly that everything is quite grand.

    It all makes sense now.

    Liked by 16 people

  4. Minnie says:

    Thank you for reposting, Sundance, for those like me who require frequent refresher courses.

    It is a lot to absorb and understand.

    Your presentation not only stretches the gray matter, it forces one to focus and learn.

    Gratitude 🇺🇸

    Liked by 10 people

  5. fleporeblog says:

    SD thank you 🙏 for this thorough explanation! I am embarrassed to admit that I was an accountant major and minored in economics but your explanation this evening makes complete sense to me. Nothing I learned in those 4 years came even close.

    On a side note, I definitely know more than our Democrat Socialist Millennial that will be joining the Swamp in January 😉.

    I listen to Bloomberg radio in the morning while driving to work. They were discussing Netflix and the fact that they were off on their 2nd quarter prediction by 1.2 million subscribers. They said that was the biggest reason the stock dropped by 14% on Monday. They also went on to say that their are currently over 100 million paid subscribers. Yet the company will be in the red this year by $3 to $4 billion dollars. They said that missing their prediction could have serious ramifications on their ability to secure loans in the future.

    Even with that many paid subscribers, they payout more than they take in. A lot has to do with them creating their own shows.

    I have a funny feeling that choosing the Obamas and Susan Rice will have major consequences on their future earnings.

    Your analysis makes it all make sense

    Liked by 14 people

  6. wheatietoo says:

    The Dow briefly went up to well above 26K, too.

    Thanks for reposting this, Sundance.
    This gives the newcomers a chance to catch up on the curricula here at Sundance University.

    Some that is ‘new’…is the recent announcement to Merge Labor and Education Departments together.
    I see this as a brilliant move, for several reasons.

    Young people get so much more out of their lessons, if they can see an ‘immediate use’ for what they are learning and studying.
    It’s one of those natural characteristics of being young…and it has been largely ignored by the myopic elitists who’ve been in charge of academia.

    This merger of depts. will have a huge positive effect on our Economy…and also on our society as a whole.

    Our kids will start getting excited about going to school…because they will see that they’re working towards a Good Job, when they graduate.
    It will even help them in getting summer jobs.

    So much Winning.
    But still not tired yet!

    Liked by 8 people

  7. TheLastDemocrat says:

    I have a good grasp of economics, due to a father who had a good grasp that was shared, and a couple good economics classes, as well as a willingness to follow what I was being taught.

    I have really pondered this prospective-business-value aspect of the stock market since reading these posts those couple of years ago. I now see that if a U.S. company decides to shift manufacturing off-shore, investors see a one-time boost on value, as it is at the moment of announcement. And, the value of the company goes up, and the finance-based indicators seem to indicate that our country is doing better, economically. I also now clearly see that the opposite may have happened. We may be losing jobs, and the price of the item produced may not drop relative to the reduction in production costs, so we don’t necessarily have an offset in our economy by having a cheaper good. If I produce cars, and I drop production cost of a sedan by $2,000 by moving assembly to Mexico, i don’t HAVE to drop the price $2,000; no, I price the car -where? – where the market will set the price. So, a $20,000 sedan might have a lower perceived value if made in Mexico, but that may only lead to a price drop of $1,000.

    But the Big Money is in making these big decisions that affect a company’s perceived value in these quantized steps. You do a major change intentionally to boost perceived value of each share of stock, rather than secretly plug away at incremental improvements in value.

    So, the investment-oriented indicators say the economy is getting better, but overall we are getting worse.

    Worse: our elected representatives are lobbied, and foster businesses to make these types of changes. These can include moving production offshore, or bringing in cheaper labor. As a person who would be a “Democrat,” if only there were a Democratic Party, these changes can also be undesirable things such as reducing worker safety, reducing product safety, or reducing liability. Also, elected officials can help the investor-type business by helping big business deal with debt – such as by simply giving a company taxpayer money, or leaving the individual holding the bag by making rules that allow companies to disappear (such as sell off part and have the debt go with the bad part, and allow that sold-off part to die, never to repay its debts).

    Then, these politicians turn around and point out how good the economy is,and keep us from seeing what they are doing by getting us to foam at the mouth over abortion or other cat-and-mouse issues.

    I appreciate the Economics Lessons so that the fog is cleared, and I can see what the politicians, both left and right, have been feeding us.

    Liked by 5 people

    • TheLastDemocrat says:

      (I reads over my hasty post – I hope it makes sense. One incomplete thought is where I noted “Democrat:” my complete thouhgt includes the idea that, ideally, the Democratic PArty would be the party to advocate for worker safety, product safety, and a well-functioning tort system so companies would be on the hook for their transgressions, such as in the Vioxx case, or is now happening with Essure, etc. –I do understand that this world of tort is quite a journey through the looking glass and down the rabbit hole.)

      Liked by 1 person

      • Payday says:

        Too bad that for every justifiable tort cases like Vioxx, there’s many more “ambulance chasing” tort lawyers trying to scam a jury to get a piece of those deep pocketed corporate coffers. And something as simple as loser pays would solve it.

        Liked by 2 people

        • Lindenlee says:

          It seems to me that we desperately need campaign finance reform, local offices for Congresspeople (not in DC), term limits, a newly and decently educated populace, and utter VOLUNTARY transparency in government operations. More and more, political business is done behind closed doors, by people who went into politics because they were corrupt (and get elected because of a corrupt electorate), and we as citizens have less and less power to correct anything.

          We can and will do better at getting better candidates, but the so-called “leadership funds”, where our representatives are bought off or decent candidates undermined, has to stop. Reps need to office out of their districts 90% of the time, out of the orbit of DC lobbyists. Time limits on fulfillment of FOIA requests (automate them, for God’s sake!), some additional accountability measures easily used by constituents to keep reps in line. Limits on lobbying jobs after congressional/senatorial service. Severe limits on campaign contributions.

          The people I know are so enraged by the impunity with which our representatives act, that something worse will come, because other than Trump and a few others, we are governed by a nest of vipers.


      • snellvillebob says:

        Are you aware that the Mandalay Hotel is suing the victims and families of those injured and killed by whatever it was in Las Vegas? They are doing this to counter lawsuits against the hotel due to the shooting. It seems the FBI/DOJ/CIA have blocked any all information that would tell these people and families why they were wounded and killed. Was this a CIA mission maybe gone wrong or maybe not? Assassination attempt of the Saudi Prince? It was massively covered up by President Trump’s administration.
        Tort reform needs to be part of MAGA.

        Liked by 1 person

    • wheatietoo says:

      It’s been like an orchestrated ‘Hunt’…

      The foreign lobbyists have acted like ‘beaters’…beating the bushes in Congress, to drive our jobs into the arms of other companies.

      The Chamber of Commerce and Wall Street, have normalized offshoring to the point of…”Everyone is doing it — you’re behind the times if you don’t do it too!”

      “Going Global” was the mantra that the propaganda media thralls trumpeted, to assist in the effort.

      And at a time when our govt should have been reducing job-killing Regulations and Taxes…they were doubling down on it instead!

      The result has been epic FUBARing of our workforce and a mountain of debt.

      Liked by 4 people

    • Ray Runge says:

      Don’t confuse th soft science of “economics” with the slippery mercury sled ride that is the various contrived financial instruments that may entice a smart gambler in an inertial play.

      Liked by 1 person

    • Ej says:

      Part of your post is dead on – it’s all perception in the form of accounting. Whatever can boost the APPEARANCE of profit, carries the day.

      Liked by 3 people

      • Ray Runge says:

        You address public relations about a company. Financial “Derivatives” are entities apart from the present and future viability that company may possess.

        Smoke and mirrors and very fast computers are more important than a viable business plan.

        Liked by 2 people

    • Your Tour Guide says:

      Last Democrat:

      Have noticed something else for years, and Sundance’s
      explanations finally outlined the “why” for it.

      A company gets taken over, consolidates, a plant is
      closed, and thousands of people get thrown out on the
      street. The stock value soars, the investment papers
      cheer about “creating value”. It doesn’t create ANY
      value for the surrounding areas.

      It DECIMATES them.

      This type of information needs to start being snuck in
      on other postings. Sundance does a fantastic job of
      explaining it here, but we’re the choir. More people
      need to see how this will benefit everyone. Many
      might actually be able to step back and realize that
      their “killings” they’ve made on the stock market
      have literally killed the areas that they grew up in.

      And consider rethinking where their money goes.
      Especially if they see a way to still realize returns
      without throwing entire communites into the ditch.

      Liked by 2 people

  8. White Apple says:

    Wall street is a retailer. Wall street doesn’t buy stock. Wall Street sells stock. To be on the side of Wall Street learn about selling stocks (shorts).

    Liked by 2 people

  9. Hillyard says:

    Since 90% of the libby left don’t have jobs and still live in their parent’s basements or are sponging off them in libby colleges, they have no concept

    Liked by 3 people

  10. OUkid75 says:

    Over 500 high schools are involved in a program called “Geometry in Construction.” Students spend an hour studying geometry, then an hour putting those principles to work by building a house on their campus grounds. When finished, the house is donated to charity, such as Habitat for Humanity.
    The kids test higher in their grasp of geometry, learn building skills, and feel they are giving back to their community, A big win all around, and great exposure to the skilled trades. One way Education and Labor departments could effectively work together.

    Liked by 6 people

  11. starfcker says:

    Sundance, great article, as usual. One thing, I disagree totally on Tesla. Tesla is about to go supernova, they are in my opinion, the next Apple. They are a real industrial company, and they are light years ahead of the competition. They will not only be profitable, but staggeringly so, starting in about ten weeks. Forget everything you have read, just add up the top line from the production in the last week of June. They just crossed the goal line. Bigly.

    Liked by 1 person

    • Ray Runge says:

      You are wise to listen to Sundance and understand that Tesla smack talking financial instrument that has VINEY tentacles in many financial side bets. Such a wonderful bag of smoke and mirrors. Tesla talked them self in enough government subsidies to float a supply boat.

      Liked by 1 person

      • starfcker says:

        Try to argue with that topline, Ray. It can’t be done. You’re going to see that real quick.


        • starfcker says:

          Do the math. 2000 model X and model S a week at a hundred grand each. 5000 model 3 at forty grand each. That’s four hundred million dollars. A week. That’s 1.6 billion dollars. A month. And they have to refinance 320 million in August? Who do you think is worried about that. They can just stroke the check. They don’t have to refinance anything


        • Ray Runge says:

          Tesla is a scintillating company. Our discussion is not about Tesla or companies per se. The discussion is about the derivative side bets that Wall Street Banks concoct that are truly not directly related to a companies performance.

          One can make more money as an institution by brokering a multitude of side bets. The brokering institution must have enough reserves to back up the derivatives created. Glass Stegall regulations rightfully apply to the Wall Street Banks that become little more than a regulated gambling casino. Devorced from the Main Street world of creating and building widgets.

          Sundance tells us that Local bank will be freed from the onerous regulatory burdens of Glass Stegal as a way to facilitate support for local businesses that display bright plan in a robust market. The Loan and the “bet” is directly to a business and the plan presented.

          Liked by 1 person

    • zorrorides says:

      TY Star, I hope other treepers who know about the metamorphosis of Tesla, the company who builds new things, will illuminate what star and the article are saying.

      Liked by 1 person

    • wolfmoon1776 says:

      Who are the malicious actors trying to bring down Tesla as suggested in that article? My suspicions are that there is anti-MAGA purpose manipulating them.


    • Elon Musk is gifted at many things, including getting tax money and subsidies from the US government.

      He is also gifted at throwing out dazzling ideas that are, in fact, ridiculous. Try the Tube-Rail from LA to San Fransisco. 300-400 Mph in a low vacuum tube. Technically feasible, PROHIBITIVELY expensive. But he would take government money tomorrow to start “building it”. Actually, he would just take the government money.

      Liked by 1 person

  12. MontanaMel says:

    One of, or, the very BEST explanation of just “what is a derivative” …! Many thanks to SD for this primer for all to “see behind the curtain”… One sneeze, one little sneeze, and we’ll see ex-employees running out the doors of every “BIG NAME NY BANK” en-mass!!!

    Everyone needs to connect the points – These MEGA BANKS have co-mingled or combined these “bet instruments” (which they treat as an asset or all things)…in with all their DEPOSITORS’ money/funds – aka: an asset of the bank too… Can you see the “risk” you as a simple depositor has been put at??? When these “bets” go south, they use your deposited MONEY to pay them off, if they can, or if there is enough….AND – POOF….there goes YOUR MONEY without recourse!

    Remember all those rule/law changes made under Obumer’s last 2 years or so… ie: BAIL IN vs Govt funded BAIL-OUT ???….

    GET YOUR MONEY OUT OF ALL THESE MEGA BANKS – including all those considered “overseas institutions” too, ie: Prime Banks of the world!!!… We have enough credit unions and Regional Banks to handle any sum you may have — in real cash USD, to deposit…just split it up some until the dust settles… Last I heard, these derivatives showed as over 70 TRILLION USD on all the bank’s books involved…I think B of A had north of 20 Trillion itself!!… That is 5 times the entire budget of the US Govt… Do you think they have such amounts “on deposit” now??? I doubt it. Check-6 and keep stacking real money…. Au and Ag metal in your own safe!…

    Liked by 5 people

    • wolfmoon1776 says:

      A timely reminder! Thanks.

      Liked by 2 people

      • MM says:

        I spread myself out across 4 Regional banks and 1 credit union……
        2 accounts at each bank/credit union……
        I sometimes get myself confused and don’t know if I’m coming or going, LOL…..

        Liked by 2 people

        • wolfmoon1776 says:

          But probably a good idea!

          Liked by 1 person

          • Your Tour Guide says:

            Got out of banks back it 1993. Had $1100
            pop up out of the blue in my account. Many
            stories going around about drug money
            proceeds being laundered through the system
            by such transactions. A teller altered the
            deposit slip, pocketed the proceeds, and had
            225 worth of bounced check fees. Took them
            over a month to correct. But, the main reason
            was this: Banks are required (by law) to
            participate in The Community Reinvestment
            Act. (Credit unions aren’t). There is no way
            in hell I’ll allow any more of my money to got
            towards HUD destroying yet more communities.

            Liked by 2 people

  13. modsquad says:

    Just… you know… daydreaming here. For stage 2 of the “parallel financial system”, Trump allows a parallel currency for lending, backed and controlled by the U.S. Treasury and not the Federal Reserve Bank.

    Liked by 3 people

    • WSB says:

      I still say Social Security should be de-centralized. Everyone takes care of their own account in their own bank. Allow a portion of that money to be invested, and local banks then have capital. Meanwhile you are then MAKING money of your own.

      Chile has done this and it works really well.


  14. wolfmoon1776 says:

    I found the following really interesting and EXTREMELY POWERFUL – what SD refers to as the SPACE BETWEEN the two economies, or also the DISTANCE between them, or also as the THIRD DIMENSION people are not looking at.

    I want to explain what I’m seeing about this now.

    Controlling that dimension is CRITICAL for both national health and sane, non-pathological management of the American (or any national or global) economy. It is an important metric, the NEGLECT of which has led to great harm of not just American good, but the global good. Sadly, I think it is likely to have been INTENTIONAL NEGLECT.

    Frankly, none of what is happening now would have happened, had people paid more attention to the negative effects of this distance.

    To see why I’m saying this, here is how I caught up with Sundance.

    First, take a look HERE, at the last link provided above:

    ♦Proof “America-First” has disconnected Main Street from Wall Street – HERE

    Before going on, ask yourself why one would WANT to disconnect Main Street from Wall Street. If Wall Street is essentially committing murder-suicide, that might be one reason. Wake up, dear Main Street, and stop the crazy spouse!

    Let’s go on. After skimming that, go to this linked article about that third dimension. READ THAT carefully to understand it fully.

    This distance is, in effect, the degree of DECOUPLING of the two economies. Although many things factor into it, the two that I find most important are (1) degree of foreign engagement of the derivative Wall Street economy, and (2) the degree of derivatization itself, with bets on companies being first derivative, bets on bets second, etc. As both of these increase, Wall street looks more and more like tulip fever.

    Also called irrational exuberance – whatever you want to call it. The more these economies separate, the more we are self-deluded as a nation. Wall Street essentially becomes both “un-American” and “in its own tulip bubble”.

    Controlling this distance is key. I don’t KNOW if reducing the degree of derivatization more strongly is the answer, but it would certainly help put investment focus BACK on Main Street, reducing the distance. I think that parallel banking system is useful, but we need to be careful.

    CHINA will try to subvert whatever we do.

    I’m going to repeat that so that Yellen can hear.

    CHINA will try to subvert whatever we do.

    Interesting times.

    Liked by 4 people

  15. Ej says:

    Funny there are dozens of in-house consumer banking attorney jobs posted this summer.

    Liked by 2 people

    • Ray Runge says:

      Searching data bases is the job. Not unlike the “contractors” for the FBI that raped the NSA / FISA databases on behalf of Steele Dossier and Fusion GPS et al.


  16. CopperTop says:

    Small but important side note. Trump stopped the sale of the Chicago Stock Exchange (CSX) to CHINA.

    Too the uninformed few people wondered how the 1% of trades on this exchange could be of value to China….

    Well this little exchange brought down the entire market for 3 days in the 90s because someone forgot to test what happens when all the trades in this little 1%er hit the system at once under a new trade automation release.

    You wait 3 days instead of 5 for your equities still to this day because of this event.

    …and someone thought it was a good idea to give China control? NOT VSG PDGT!

    Liked by 3 people

    • wolfmoon1776 says:

      Trump was BRILLIANT to stop that.

      Chicago is one of the central HUBS of CPUSA infiltration in the US. It’s why I sometimes use “ChiComs” for CHICAGO COMMUNISTS. The Chinese communists would have assistance out the wazoo in Chicago.

      Chicago Exchange would have been used as a lever for China in the US. Horrifying. The spuds, dweebs and minions would never stop this idiot sale – only TRUMP has the foresight to do the right thing.

      Liked by 2 people

    • TheLastDemocrat says:

      Can we sell China the Chicago Carbon Exchange?

      Liked by 1 person

  17. sterling1776 says:

    Speaking of MAGAnomics and Main Street, what a great story tonight about the American worker and spirit that makes us a truly unique and blessed country. What really got me was when Charles got choked up.

    Liked by 1 person

  18. Dutchman says:

    If I may, step back from the financial aspects of this story, and look at the approach, as we see this same approach, with our Glorious Bastard, a lot.
    Creating a seperate, or parallel entity or system, and getting it ‘up and running’, before demolition.

    Very understandable, given his business experience. You have to keep the business producing profit, so you can use that $ to finance the demolition/new construction.

    I suspect he is applying this same approach to the intelligence community, and DOJ, even deepstate.

    To those on other threads, who say to tell with it, de-classify everything, or fire everybody, well you DON’T have what it takes to be the Donald.

    To look at a large dirt lot, with only a few weeds sprouting, and visualise a 30 story grand resort, and see every step, from foundation to cutlery, in absolute detail. And, to then plan out and organise each step, in just the right order, hiring and guiding your team, meeting 100 challenges a day, and seeing the vision become a reality, before deadline and under budget.

    He is said to be a ‘destructive force’, but his history is of CONSTRUCTION. In diplomacy, finance, trade, he insures he has a solid structure in place, BEFORE beginning demolition, cause he is,…

    Liked by 5 people

  19. Ghost says:

    Brilliant, incredibly Brilliant !
    So glad I recently found this place!!!

    Liked by 1 person

  20. One way I looked at the derivatives issue was AIG and the use of credit default swaps. These are effectively insurance products that involve a payout in the event that the underlying bond fails. However, they were sold by AIG to anyone and everyone on Wall St, not just the owner of the underlying bond.

    This is insane. Imagine being able to buy an insurance policy on someone else’s house. You would have every financial incentive to burn their house down in order to collect the payoff. Now imaging there are 15 policy holders with the same policy on that house. That would require the insurer to payout to all 15 policy holders, far exceeding the underlying value of the house. This is the madness of CDS and AIG. AIG was the insurance broker and Lehman Brothers was the house everyone else had brought policies on. The payout was eventually taken on by US Taxpayers as AIG collapsed. What should have happened at the time was emergency legislation to reclassify all CDS as null and void with AIG liable for the amount they had mis-sold. The fraud perpetrated on the taxpayer was off the charts.

    CDS were never classed as insurance products and were regulated by the CFTC. This is why this market is so corrupt and harmful to Main St interests. If they were regulated as an insurance product, the rules on capital requirements and who can buy them would be entirely different.

    Sundance’s explanation of the space between Wall St and Main St and how the economy will transition is off the charts brilliant. You don’t learn anything this good in business school.

    Liked by 3 people

  21. Phil says:

    When I figured out how to find the local school district bond online, I was confused. All the reports said that the Bank of America owned it yet when I looked at the actual bond it explicitly was owned by Cede and Co. (which was a subsidiary of DTCC). They were the legal owners. Further studying showed that in order to trade online DTCC were the legal owners of almost 99% of all stocks. You cannot trade a stock unless you are the legal owner. Look at how the terms have changed over the last few years. From stockholder to shareholder to beneficial shareholder to stakeholder. They all mean a specific thing. If you do not physically own a stock certificate you do not own that stock.
    Dodd Frank Act – When you put money into a bank you are by definition loaning them that money. It is no longer yours. You are now an unsecured creditor. If that bank has financial problems you may get your money back by receiving stock in that bank (the one that is in trouble).
    Please if I am wrong, someone correct me. I do not want this to be right and if it is Trump is probably working on resolving it as Sundance has pointed out.


  22. Your Tour Guide says:

    Down the line, I would love if Sundance would get into how
    creating the excuse for issuing bonds has bastardized the
    political process in jurisdiction after jurisdiction.

    YTG did a lot of research on the “set up, the swing, the home
    run!!” of how politicians, local chamber of commerce types
    would push to get things built. Always suggesting that by
    building school X, Hospital Y, Jail Z everything would get
    better. Which, it never did. Unless you happened to be the
    one issuing the bonds on whatever gold plated structure
    they were issued on.

    This phenomenon goes into HUD housing, greenspace
    creation, recreation facilities, historic structure renovations,
    traffic “improvements”, “Main Street improvements”,
    stadiums, libraries, ampitheaters, county or city
    mega buildings, regional waterparks ( Hal Rogers
    Waterpark, off of I 75 in Southern Kentucky). All need
    to have an “authority” created by the state legislature
    to do so. Which creates just one more opportunity for
    pockets to be lined before the vote is taken.

    Liked by 1 person

  23. After 2008, you would have thought the Congress would have eliminated the gambling with financial instruments. I guess the power of the political contribution still reigns.

    Liked by 1 person

  24. Danimal28 says:

    Sundance – Please keep posting this content at least once a quarter. Seriously. They are vital.

    Have a wonderful day!

    – Working at an AMERICAN OEM…

    Liked by 1 person

  25. Mrs.E says:

    We cancelled our Netflix too, due to veering to the far left.
    Isn’t is LOVELY having a future again? And yes, especially for our children and their working teen years? I thank God daily for His mercy to this Nation.

    Liked by 1 person

  26. MsB says:

    Just a wonderful article! I’ve read similar from Sundance, but I benefit from reading over and over again. Hard to grasp it all. PDJT’s economic brilliance is explained so well. Thank you AGAIN, Sundance!

    Liked by 1 person

  27. MelH says:

    How would I know which banks are “Regional”? I need to get my money out of BofA, obviously.


    • Your Tour Guide says:

      Join a credit union. More local, don’t have to squander
      money through federally required Community Reinvestment
      Act set asides. Outlined above.

      Liked by 1 person

    • WSB says:

      Look around your own town and make a list of the banks, and research them online to find out who the actual owners are. There are quite a few.

      I have a friend who is also in the know about new start up banks, He has a nose for getting into deals with great new local banks. I does take research, though.

      Liked by 1 person

  28. thedoc00 says:

    The article is also provides an explanation of why Republican and Democrat congress members held out on the President Trump tax cuts until the hedge fund traders were given the tax breaks under President Trump’s tax legislation. The original tax plan was tax gains as income because of the nature and source of these funds !!

    Liked by 1 person

  29. dayallaxeded says:

    LIT’RALLY THE BEST “I TOLD YOU SO!” EVAH! Please, tell me again! And again! And again!


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