This definitely adds some perspective on current market conditions.
That’s a bold statement. So bold that if Mr. Edwards turns out to be right it will be one of the greatest calls ever.
The underpinnings of his analysis are sound. Financial assets have been inflated artificially since March of 2009 and we are now (according to Edwards) going to see the deflation of that bubble back to more or less where we were around the time of the Crash.
Marc Faber is much more concerned with a slowdown in the United States than the one in China. And he makes a good point. The only thing driving the US “recovery” was asset price inflation caused by the Fed. That is over for the foreseeable future.
Faber sees more than a correction on the horizon.
Isn’t this fun!?
The good news is the market is up right now. The bad news is the Dow was up yesterday for most of the day but then closed 200 points down.
It should be remembered that even in tumultuous moments like the one we are in the market rarely goes straight down.
I like Art Cashin. I used to read his UBS column and it was always full of great stories about the old days, even from before he came on the scene. I learned some interesting stuff from this guy. I can still picture in my mind’s eye him wearing his “Dow 10,000” hat in 2008. (The joke being that he got the hat when the Dow was moving up and not crashing down like it was in 2008.)
The “plunge protection team” (PPT) used to be something which was whispered about. Now it’s openly discussed in the New York Post. Hell will become a frost covered plain before the New York Times will ever mention the PPT of course.
As I have written before, there is an understanding among traders post-2008. If the market heads into a nose dive the Fed will intervene. It will actively buy futures (and likely whatever else it has to) in the market to buoy the market.
Can’t you just feel the excitement in the economy? It’s palpable. Boom. Boom. Boom. Good times! Happy days!
We have been “pressing the case for sound money” for a very long time. Many others, particularly those economists considered part of the Austrian School have been doing so for decades. It was the Austrian School economists who saw 2008 coming. It was the Austrians who warned the world. But the Austrians are a truly and deeply free market bunch, and politicians don’t like free markets. So the warnings went unheeded.
It is a beautiful car.
We are all for innovation. We are all for non-gasoline vehicles which are ready for the market. The Toyota Prius is a great example of a car which makes sense from a business perspective.
Tesla is not as clear cut. I’ve looked at the Tesla S first hand and it is an impressive auto. 0-60 in 4 seconds with no gear shifts is pretty cool. The price relative to other cars with similar levels of performance is competitive.
It’s been an interesting if not fun ride up in the markets. Through a 6-year economic slowdown stock markets have rallied and rallied and rallied. Everyone assumes that the Fed is backstopping the market, that it has to for political reasons. So people have piled in even though earnings and economic indicators have been generally lackluster. Sounds almost like “house prices never go down.”
But not quite.
In January Bloomberg reported that Tim Geithner called the CEO of Standard and Poor’s after the company downgraded US debt to explain that the move would have “ramifications” for the company. Now S&P finds itself embroiled in a lawsuit driven by the Justice Department which S&P says is punishment for the downgrade.
Take this with a grain of salt, but it is an interesting chart for sure.
The economic tide has been going out for quite a while, but the pace has just quickened in emerging markets – big time. Things have become quite unsteady and no one knows whether the current instability will trigger something broader in the developed economies. China is slowing. Japan has horns locked with China economically and increasingly politically. Europe is catching its breath before another wave rolls through.
Is anyone, anyone, surprised by this?