How The Stock Market Got to Be Out of Touch with Reality

The comments below are an edited and abridged synopsis of an article by David Stockman

International Man asks David Stockman “What could derail the Fed’s ability to pump up the stock market casino with all this easy money? They simultaneously want zero interest rates and more inflation. It seems something has to give,” and “What could derail the Fed’s ability to pump up the stock market casino with all this easy money? They simultaneously want zero interest rates and more inflation. It seems something has to give.”

How The Stock Market Got to Be Out of Touch with Reality | BullionBuzz
Reality Check Ahead. Paper speech bubble

Stockman gives detailed and in-depth answers to both: “Both ends of the Acela Corridor have lost their marbles. This year, Uncle Sam borrowed $4 trillion in six months, the Fed printed $3 trillion in three months, and Wall Street drove the S&P 500 to 52X reported LTM earnings in the context of a deeper economic plunge than occurred in the worst quarter of the 1930s…” and “…what’s going to give sooner or later is the entire house of monetary cards erected by the Fed and its fellow-traveling global central banks over the last several decades. What they are doing is based on the triple error that inflation is too low, that deeply repressed and falsified interest rates fuel real growth, and that private savers are a hindrance to optimal economic function and need to be euthanized via confiscation of the real (after-inflation) value of their capital.”

The truth is, we’re on the cusp of an economic crisis that could eclipse anything we’ve seen before. And most people won’t be prepared for what’s coming.

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