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Is Congress Fiddling While Rome Burns?

I'm starting to think this is ironic ...

The country is in debt and the Government's revenue cannot cover the current debt. In other words, the cash outflow is greater than the cash inflows, so we have a Liquidity Contraction situation.

What's ironic?

The ironic part is that the Stock Market now has its Long Term Liquidity flows in Contraction territory as you can see on today's chart (this chart is updated every day on our paid subscriber site).

Back in the 20's and 30's, it was Jesse Livermore who commented that the market was all about money ... Money flows in, and the market goes up ... Money flows out, and the market goes down.

So, it is one of the reasons we track money flows ... and Liquidity Levels are now in Mid-Contraction territory which is a dangerous place to be, and a place where Congress will be punished if they don't stop fiddling around.

FYI ... An interesting commentary from Wikipedia: "During his reign, Nero focused much of his attention on diplomacy, trade, and enhancing the cultural life of the empire... He is also infamously known as the emperor who "fiddled while Rome burned". Maybe Congress should stop fiddling around?

Long Term Liquidity Flows

 

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