The Everything Bubble — Waiting for The Pin

The comments above & below is an edited and abridged synopsis of an article by David Stockman

The markets are due for a pin to burst their gigantic bubble. Among the many sharp edges:

1. The virtual certainly of a recession within the next two years, and a typical 30%-50% drop in earnings;
2. The Fed pivoting to Quantitative Tightening (with other major central banks to follow), and the consequent massive drainage of cash from the bond pits;
3. The US president and (among other things) his new Trade War, which will get out of hand globally;
4. The impending yield shock, which will thunder through the financial markets when federal borrowing hits $1.2 trillion in the coming year, on its way to $2 trillion+ annual deficits as far as the eye can see;
5. A deeply impaired Main Street economy that is groaning under $68 trillion of public and private debt, and a reverse Robin Hood financial regime that has left 80% of the population on welfare or struggling to make ends meet on earnings that barely keep up with inflation; and
6. The giant elephant in the global economic room—or China’s historically unprecedented and freakish explosion of debt, manic building, monumental speculation, systematic lying and fraud, and centralized command-and-control that is destined to end in a spectacular implosion.