Violence Erupts In Minneapolis As Stocks Edge Higher, Closer to All-Time Levels, Fueling America's Outrage; 40 Million Unemployed

Nothing happens in a vacuum.

Violence has broken out in Minneapolis, where four policemen held down and killed George Floyd in broad daylight, one officer holding Floyd down with his knee on his throat, while Floyd, who was already handcuffed, repeatedly said he couldn't breath and onlookers pled with police to ease up on their restraint.

Floyd, 46, was killed on Monday, Memorial Day, in a manner shockingly similar to the death of Eric Garner in New York City, back in 2014. Garner was brought down and eventually killed by cops for supposedly selling "loosies," loose cigarettes.

Floyd's crime has yet to be revealed, though the incident occurred as police were investigating the possible use of counterfeit currency.

Wednesday night, a black man was shot and killed amid setting of fires and widespread looting and vandalism throughout the city.

It's difficult to understand how these Minneapolis police could not have known exactly what they were doing, considering the widespread coverage of the 2014 Garner killing. All four officers have been fired and will likely face charges, though they have not been, even though Minneapolis Mayor Jacob Frey has called for criminal charges to be levied against all four.

The resultant outburst from the frustrated community was to be expected. It's what happen when those in positions of power and authority oppress the public, as has been the case nationally since the outbreak of coronavirus. Lockdowns and stay-at-home orders by governors of almost every state have put people on a razor's edge and all that was needed was a spark - like Floyd's murder - to set the violent pattern in motion.

More violence will follow, as certain as night follows day. American citizens are angry and about to erupt as their freedoms have been limited, their employment vanishing, and their rights overridden.

On Thursday morning, the Labor Department announced that another 2.1 million Americans filed initial unemployment claims. Over the past ten weeks, more than 40 million have filed for unemployment nationally.

Meanwhile, stocks continue to feed off the easy Fed currency to send stocks higher and higher. Whatever the market is doing, as unemployment and the associated distress and anger swells, the optics are not good. Everyday Americans have been railing against the huge disparity in wealth between to top one percent (or 10 percent) and the rest of the country for years. A consistent rally in the face of what looks to be coming depression only adds fuel to the fire. The NASDAQ is within five percent of its all-time high. The S&P is a little more than 10 percent away from its record close back in February.

On Wednesday, stocks gained again, as gold and silver were pounded lower, though both are rebounding prior to Wall Street's opening bell.

Most states are heading into a second phase of reopening their economies, though results have been mixed. It's a near-certainty that the economy will suffer a massive failure for the second quarter, along the lines of a 40% decline in GDP, but for now at least, Wall Street seems content to look beyond that, charging higher, as earnings continue to disappoint.

Equity markets are out of control, now fully functioning under the thumb of the Federal Reserve and their now-$7 trillion balance sheet. This relentless rally off the March lows has huge trouble written into it.

At the Close, Wednesday, May 27, 2020:
Dow: 25,548.27, +553.16 (+2.21%)
NASDAQ: 9,412.36, +36.58 (+0.39%)
S&P 500: 3,036.13, +44.36 (+1.48%)
NYSE: 11,837.53, +234.53 (+2.02%)