Salient to Investors: David Stockman writes: The August CPI gives the Fed an excuse to keep shoveling free money into the casino. No Fed rate increase would be a clear indication of its fear of reining in Wall Street’s greedy and gamblers and that Keynesian central banking in the last two decades
READ MORE... →Salient to Investors: David Stockman said: The Fed is on a jihad against retirees and savers. 80 months of ZIRP has not helped the economy because we are at peak debt, with US business $12 trillion in debt, versus $10 trillion before the crisis. The massive money printing has all
READ MORE... →Salient to Investors: David Stockman writes: The global economy is transitioning into a deep deflation. Irving Kellner erroneously recommends the Fed delay its rate hike for reasons including the recent plunge in stock prices, the market’s dislike of an end to the easy money which has kept it afloat, and because all
READ MORE... →Salient to Investors: David Stockman writes: Artificial monetary bubbles always crash. However, if the Fed listens to Wall Street and does not raise interest rates expect a short-lived run to the May 2015 highs before the ultimate day of reckoning. ZIRP has not caused a credit fueled inflation of either the
READ MORE... →Salient to Investors: David Stockman writes: A growing chorus of investors blamed last week’s stock market sell-off on esoteric but increasingly influential trading strategies pioneered by hedge funds like Bridgewater. Hedge fund performance has benefited from broken capital markets rigged by the Fed. Thesecasino gamblers bought every one of the
READ MORE... →Salient to Investors: David Stockman writes: US stocks are in a bear market. Honest financial markets would have sold off long ago, but for central bank falsification of asset prices. The S&P 500 is at 20 times trailing earnings as of June 2015: $97.32 per share versus $103.12 at the end of
READ MORE... →Salient to Investors: David Stockman writes: Reliable signs of an economic recovery are few. Housing has not moved at all. Private construction spending is 7% below December 2007 levels, 43% below its early 2006 peak, at January 2002 levels nominally, and 1992 levels when adjusted for inflation. Spending is 2.1% of
READ MORE... →Salient to Investors: David Stockman writes: Expect a central banker to soon herald that more monetary heroin is coming, triggering a market rally and pronouncements that its “correction” is over. It will take time for the market to lose its unwarranted faith in central bank omnipotence. However, money will now be made by selling
READ MORE... →Salient to Investors: More and more analysts are pointing to problems in China and other markets as posing a real threat to the American economy. Raoul Pal at the Global Macro Investor said the global GDP pie is shrinking and cites the dollar’s upward move against nearly all emerging-market currencies. In
READ MORE... →Salient to Investors: David Stockman writes: The S&P 500 has sliced through both the 50-day and 200-day moving averages. 2130 on the S&P 500 will prove to be a generational high. CAT, China, European luxury brands, the NASDAQ Biotech Index are shorts. Expect the Fed to announce they are well short of
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