Jump to content

Bubblemania, Big Time


Recommended Posts

There is no stock bubble. Most stocks are moving up in an orderly, predictable manner typically found during cyclical bull markets.

 

Decent gap up on USNA, ISIL to new highs.

 

SUNW and BEAS look like the next stocks to break out and start moving.

 

I presume that reallocation from bonds to stocks will start accelerating now.

Link to comment
Share on other sites

  • Replies 217
  • Created
  • Last Reply

Wndysrf

 

The 12-month change in CPI was 2.1%. Thus the current 3-month T-bill rate of 0.9% is -1.2% in real terms.

 

Negative real rates (monetary stimulus) plus 5% of GDP budget deficit (fiscal stimulus). That's one of the most balls-out stimulative stances in history.

 

What's it imply? Probably, artificial stock market boom this year; artificial economic boom next; then another worse bust in both. We are burning the furniture to make a nice bonfire at the lawn party. Enjoy.

Link to comment
Share on other sites

machine: all that stimulus and the economy continues to detoriate. Throw in the fact that 10s are now north of 4%, and you get one big mess. No more re fi bubble, no more liquidity for stocks. Repeat after me, all the kings horse and all the kings men can not put humpty dumpty back together again. You can not cure the patient with the same medicine that nearly killed him. No way this works in a world swimming in overcapacity and supply. EOR.

Link to comment
Share on other sites

There is no stock bubble. Most stocks are moving up in an orderly, predictable manner typically found during cyclical bull markets.

 

Decent gap up on USNA, ISIL to new highs.

 

SUNW and BEAS look like the next stocks to break out and start moving.

 

I presume that reallocation from bonds to stocks will start accelerating now.

100-200 point openings is orderly?

 

24% - 45% increase in a 2-3 month period is orderly?

 

I trust you are kidding....

Link to comment
Share on other sites

There is no stock bubble. Most stocks are moving up in an orderly, predictable manner typically found during cyclical bull markets.

A bubble, as I use the term, means that prices have far exceeded the fundamentals and will eventually decline greatly and painfully for everyone involved. How orderly the rise isn't a factor.

Link to comment
Share on other sites

machine: all that stimulus and the economy continues to detoriate. Throw in the fact that 10s are now north of 4%, and you get one big mess. No more re fi bubble, no more liquidity for stocks. Repeat after me, all the kings horse and all the kings men can not put humpty dumpty back together again. You can not cure the patient with the same medicine that nearly killed him. No way this works in a world swimming in overcapacity and supply. EOR.

Who said that it had to work? You think that the monetary and fiscal madness is more than a desperate delaying action? All these guys are doing is keeping the wheels on long enough to loot the treasury and get out of town. :o

Link to comment
Share on other sites

You can not cure the patient with the same medicine that nearly killed him.  No way this works in a world swimming in overcapacity and supply.

You're right. The patient is terminal.

 

But a triple dose of Oxycontin, crank and BC bud will have him feeling fine for a few hours, before he checks out for good.

 

Enjoy the last party; that's our future going up in smoke.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...