Keynes' policies stressed low interest rates, money printing and an assault on savings. He believed in a progressive income and estate tax to redistribute wealth, not to the people, but to the government. The combination of these policies would encourage consumption and higher employment. These policies have failed, yet we keep repeating them because the oligarchs running the show know it works for "them." It's coming to a bad ending.
We took Tuesday off for a prearranged family outing to Boston. Usually this is the way things happen--take a day off and bad stuff happens in markets. The negative stock market action continues but now we're at the very least short-term oversold.
The news background hasn't changed much with U.S. economic data remaining uninspiring--jobless claims (unchanged); consumer spending (weaker); durable goods orders (below expectations) and consumer sentiment (also below expectations).
Worries persist as China's manufacturing data contracted the most since 2009. In Germany bond auctions yielded 35% fewer bidders. CDS (Credit Default Swaps) used by bond buyers to insure against default have seen spreads (premiums) widen making protection inefficient.