The disconnect between stock and bonds

Start with the idea that there is no 'stock market', there are simply companies who all use standard accounting and keep S/L accounts at a fair, automated bank.  Then extract stock prices after the whole system is analyzed as a pure debt/savings ploy.

hat you find is that the loans and deposits for a particular company will match his inventory levels, in term  period and surplus, even though he bank as an asynchronous interest swap S/L.   

In other words, the stock market is partitioned, there is no eregodic process. In an honest money system, they have no financial interconnections, no loops, no cycles.  So, just add up the total in earning and payments from the price neutral automated banker.  Over a length of time that carries most of the economic depreciatin cycle, the complete sequence, or at least two sequences from the individual company.  Add up their net takings from the pit boss under contract.  This model is the Godot equivalent to a flat earth model. The numbers you get are uncertain and depending on where you start, your estimate of a complete sequence, and the accuracy of time. But they should be uniform bounded, not Gaussian like the flat earthers get.

In today's mini crash, it was led by tech and that means big tech, Google, Apple,Facebook, Amazon.  If we use the simple model then the lower price implies that a computation of yields over their complete sequence changed.  They are doing better in the pandemic with the stay at home.  Apple just split its stock, Tesla had a near profit.

Today's mini crash had a specific cause, and I guess the anti trust orders  against google.

Why have folks invested in big tech? They can shadow bank and avoid the Fed taxes. That is aone point yields advantage, and is the cause of the anti trust suit.

It is a beginning in a larger debate, I keep saying.  In the covid world it is apparent that the big networking companies are a kind of digital money, the way they run ads, searches, and messaging.  It is also clearer even to monetarists that tax collecting by the Fed is killing the regulated banks.

The ten year dropped a few basis since Powell's speech.  Remember when Bernanke threatened to drive down the ten year with QE, and it went up?  There government responsibilities have reversed their position in the market. Powell is being forced into a very destructive, artificial deflation. Way off equilibrium. It won't be too bad, maybe half a Nixon.