New Home Top 5

I, Nazgûl

By Rusty Guinn | 10 Comments

Being clear-eyed and full-hearted doesn’t mean being passive, weak, or silent.

It means resisting every effort to supplant our autonomy of mind with symbols of identity, no matter the source.

Apocalypse Always

By Rusty Guinn | 10 Comments

Extreme language during election season isn’t anything new.

But this time it really is different. Our response must be different, too.

Donald Trump and the Common Knowledge Game

By Ben Hunt | 34 Comments

The question is not whether Trump will accept the election result if he loses. He won’t.

The question is whether a Missionary with actual power will join him.

Virtue Signaling, or … Why Clinton is in Trouble

By Ben Hunt | 19 Comments

Don’t get me wrong. I’m thoroughly despondent about the calcification, mendacity, and venal corruption that I think four years of Clinton™ will impose. Trump, on the other hand … I think he breaks us. Maybe he already has. He breaks us because he transforms every game we play as a country — from our domestic social games to our international security games — from a Coordination Game to a Competition Game.

Men of God in the City of Man is a nine part series about a narrative virus that infected the charismatic and Pentecostal churches in the United States. It isn't a story about Christian Nationalism. It isn't a story about January 6th. It isn't a story about why people voted for Trump. It is a story about a story. It is a story about the language that created a self-sustaining movement defined by its unwavering belief in a fundamentally corrupt electoral system.

Recent Notes

Mailbag – Lucifer’s Hammer Edition

By Ben Hunt | September 11, 2020

It’s been a full year since I wrote my last Mailbag note, which is kinda pathetic.

Well, better late than never. Reader comments and emails following our publication of Lucifer’s Hammer have been amazing, and it would be a disservice to the Pack if I didn’t collect some of them here. Enjoy!

Invisible Threads: Matrix Edition

By Ben Hunt | September 9, 2020

I’m not saying that we all have to become volatility traders to survive in the market jungle today, any more than we all have to become game theorists to avoid being the sucker at the Fed’s communication policy table.

But if you’re a traditional investor whose sandbox includes big markets like the S&P 500, then you’re only disadvantaging yourself by ignoring this stuff.

The Game of Tesla

By Ben Hunt | September 3, 2020

Recent price action in Tesla is the Common Knowledge Game in action.

It is the power of the crowd watching the crowd. It is the power of – not what you think is true, and not what you think the crowd thinks is true – but of what the crowd thinks the crowd thinks is true.

The Cartoon Put

By Rusty Guinn | September 1, 2020

Seeing cartoons made from data doesn’t give us license to ignore the underlying feature of the world being measured – it gives us a duty to cut through the abstractions obscuring that feature of the world.

Lucifer’s Hammer

By Ben Hunt | August 31, 2020

There’s a comet speeding our way, a comet of endemic urban violence.

And for so many people – especially young men with the voice of Ego now shouting in their heads as the whispers are turned up to 11 by the amps of political party and social media – they think that post-apocalyptic world sounds just dandy.

Webinar on Security Analysis Narrative Monitor

By Ben Hunt | August 26, 2020

We think we can identify the periods where market participants are primarily focused on either multiples, fundamentals, or technicals in the way they talk and think about investing.

Each of these narrative regimes – multiples-focused, fundamentals-focused, and technicals-focused – generates a powerful signal of subsequent market dispersion (cross-sectional volatility) and subsequent market performance.

Cheesing

By Rusty Guinn | August 26, 2020

In a world awash with cheesing, being lawful good doesn’t mean being lawful stupid.

But for God’s sake, don’t lose your soul in the process.

Sacrifice for Thee, Vast Wealth for Me

By Ben Hunt | August 25, 2020

Doug Parker, American Airlines CEO and Chairman of the Board, wrote a letter to his employees today that pretty much defines high-functioning sociopathy.

I’m going to reprint excerpts from that letter – which is couched in the saccharine vocabulary of modern team-speak, but is in truth a shakedown letter to employees and a ransom note to the US government – and then I’m going to tell you a few things about Doug.

The Fujiwhara Effect

By Rusty Guinn | August 22, 2020

Citizens must be capable of holding multiple ideas in their heads at once.

We can believe that the aims and intents of political powers are not equal while also focusing explicitly on the misuse of the tools of narrative to manipulative the populace by BOTH.

Facebook Delenda Est

By Ben Hunt | August 20, 2020

More than any other company, Facebook is undermining our democracy and our most integral political rights.

More than any other company, Facebook has bought and paid for political cover at the highest levels of American, Indian and European government, political cover that prevents any of the actions we might take as a society to rid ourselves of this cancer.

Facebook delenda est.

Carny Barkers

By Ben Hunt | August 13, 2020

In the age of capital markets as carny show, we are told by barkers like Cramer that this is what a smart investor or management team does … they should look to the grift du jour for their edge.

Can’t Fight This Feeling

By Rusty Guinn | August 12, 2020

No, I don’t think there’s a bubble. No, I don’t think a crash is coming. But when Mark Cuban says this reminds him of 1999 and 2000, he’s right.

And the reason worries me more than either of those things.

The Grifters, Chapter 2 – N95 Masks

By Ben Hunt | August 11, 2020

I don’t think I have the words to communicate just how screwed up our PPE distribution system is in this country, or what a profound betrayal it is for our government to support this perverse system of personal greed and corporate ambivalence in exchange for campaign soundbites and photo ops.

But I’m gonna try.

Office Hours – 8.13.2020

By Rusty Guinn | August 11, 2020

It’s the August 11th…I mean, August 13th edition of Office Hours, an interactive livestream in which Ben and Rusty discuss all things narrative in the world today.

Get Me Tools and a Beer!

By Rusty Guinn | August 10, 2020

There is nothing wrong with wanting the US to bring back certain critical manufacturing industries to its shores.

But don’t buy the narrative that a crazy scheme like the Kodak grift is the only way to make it happen.

Deep Sociopathy

By Ben Hunt | August 6, 2020

Is murder bad? Hmm, I dunno. What are the chances I will be caught and what price will I pay if that happens? If the odds are high enough and the price steep enough, then yeah, I guess THAT would be bad. But the act of murder itself? I mean, I’m sure whoever I murdered – if I were to murder someone, that is, because I really don’t think you can prove that I did – was getting in the way of something that was very important to me. When you really think about it, they were doing the bad thing! Why do you ask?

Welcome to the world of commodity trade finance.

The Mountain and the Molehill

By Rusty Guinn | August 4, 2020

There ARE real threats to both the rule of law and our cherished capitalist system today.

But you won’t find either on the streets of Portland or Seattle.

The Grifters, chapter 1 – Kodak

By Ben Hunt | July 30, 2020

We’ve been assaulted by three brutal grifts in just the past week … three smacks from Bobo and his bag of oranges … each deserving of an Epsilon Theory note.

Here’s chapter 1 – the ludicrous crony capitalism of the US government giving Kodak $765 million for “pharmaceutical supply production”.

That’s the Thing I’m Sensitive About!

By Rusty Guinn | July 29, 2020

Like all abstractions, extremes can be misleading. They can also be revealing. Using extreme times to learn what our leaders and institutions are sensitive about is a critical, unmissable lesson.

Taiwan is now Arrakis

By Ben Hunt | July 27, 2020

“He who controls the spice controls the universe.”
The world’s principal supplier of semiconductors – the spice of OUR global empire – is now Taiwan.
Thanks a lot, Intel. Thanks a lot, Bob Swan. Thanks a lot, Jack Welch. Thanks a lot, all you Wall Street wizards of financialization.
Taiwan is now Arrakis. And we WILL fight over it.