The Swamp

President Trump promised to “drain the swamp” in Washington. In doing so, he took on not only the Democratic party but also the McCain-led Republican party establishment, both part of the same swamp, to say nothing of the “deep state” of politicized judges, bureaucrats and contractors.

While it clearly needs doing, the swamp is fighting back, obstructing him at every turn. So far his strategy has been appeasement and it has not worked. Does Comey’s firing mark a return to open hostilities?

We’ll see. But the conflict does mean that government is essentially at a standstill and will remain so indefinitely. It puts basis of the Trump rally in grave doubt. Taken together with an economic slowdown and the mess resulting from Obama’s disastrous international relations policies, the whole situation is an accident waiting for a place to happen.

Don’t believe the VIX as a measure of risk. These days, it is simply a trader’s tool for running short squeezes. Risk is as high as it gets.

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