Urgent Warning: 6 Signs the Great Crash Is Upon Us! – David Stockman’s Contra Corner -7-16-15

Salient to Investors: Harry Dent writes: All the signs point to the end of the global bubble. The greatest trigger will be the bursting of the massive, unprecedented China bubble. China’s stock market loss of 35% in less than 30 days signals its stock bubble has peaked: a drop of 30% to 40%

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Billionaire Paul Singer: China Crash Is ‘Way Bigger Than Subprime’ – Bloomberg Business 07-15-15

Salient to Investors: Paul Singer at Elliott Management said China’s debt-fueled stock market crash is way bigger than the US subprime mortgage crisis but may not be enough to cause a global financial market meltdown. Bill Ackman at Pershing Square Capital Mgmt said China is a bigger global threat than Greece by far, their stock

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Fareed Zakaria GPS – CNN 07-12-15

Salient to Investors: Fareed Zakaria said: The Economist says Connecticut bankrolls the weaker states in America: 5% of their GDP over the last 20 years has been net income transfers to states like Mississippi and Alabama. Allen Cooperman says the nuclear deal will only take Iran from 2 months away

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Don’t Worry About the Bull Market; Worry About the Dollar: Richard Bernstein – ThinkAdvisor 06-22-15

Salient to Investors: Richard Bernstein at Richard Bernstein Advisors writes: The bull market is intact. Markets rise after the Fed starts raising as earnings trump rising rates, and there is no end of cycle behavior, like excessive leverage or a big buildup in inventories except for energy. The MSCI European

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The Warren Buffett Economy – Why Its Days Are Numbered (Part 4) – David Stockman’s Contra Corner 06-15-15

Salient to Investors: David Stockman writes: The Fed has generated a $50 trillion financial bubble and made money and capital markets to little more than gambling casinos. Speculative rent-seeking in the financial market has replaced entrepreneurial innovation and supply side investment and productivity, resulting in a severe drop in real growth and a

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The Warren Buffett Economy – Why Its Days Are Numbered (Part 3) – David Stockman’s Contra Corner 06-11-15

Salient to Investors: David Stockman writes: The ratio of finance to GDP has risen to 540% vs. the historic norm of 200%. Central bank driven bubble finance since the late 1980s has resulted in the GDP deflator-adjusted value of corporate equities and credit market debt outstanding rising 8 times, while real median household

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The Warren Buffett Economy – Why Its Days Are Numbered (Part 2) – David Stockman’s Contra Corner 06-10-15

Salient to Investors: David Stockman writes: The financial carrying capacity of the developed market economies has deteriorated since the 1980s; due to aging demographics, declining competitiveness v. emerging market economies, declining productivity growth, and the big increase in the leverage ratio against public and private incomes. The US’s ability to

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The Warren Buffett Economy——Why Its Days Are Numbered (Part 1) – David Stockman’s Contra Corner 06-10-15

Salient to Investors: David Stockman writes: This central bank fueled boom will ultimately bring a prolonged deflationary contraction and day of reckoning for financial assets. During the 27 years of Greenspan’s Fed Chair term from 1987-2014: The Fed balance sheet grew 23 times. Buffet’s net worth grew 35 times, or 19 times adjusted

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‘The market is rigged’ – Michael Lewis – BBC News 04-10-15

Salient to Investors: Michael Lewis said: Charles Munger says high-frequency trading is the functional equivalent of letting a lot of rats into a granary. Electronic trading has rigged the market against ordinary investors, particularly in America, by allowing high-frequency traders to front run institutional investors and skim billions of dollars from the

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Meet The New Recession Cycle — It’s Triggered By Bursting Bubbles, Not Surging Inflation – David Stockman’s Contra-Corner 04-05-15

Salient to Investors: David Stockman writes: Chris Rupkey at MUFG Union Bank says consumers have emerged from the winter blues and if they spend anywhere as great as they feel, the economy will roar over the next few months. Rupkey and others have been expecting a roaring economy for several years but are

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