Wall Street starts talking openly about a Fed driven bubble in stocks

Robert Shiller, not always our favorite economist here, is warning that the stock market is looking particularly bubbly. This isn’t a huge story except that talk of a bubble is now coming from one of the accepted shamans of Keynesianism. Shiller also called the tech bubble and housing bubbles accurately. His book Irrational Exuberance is a classic.

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Turmoil in China’s Stock Markets Takes a Psychic Toll

A few posts ago we made the point that we should all count our lucky stars that we were not some newly middle class guy in China who leveraged his home to play the stock market.

If however you are that guy and you are reading this know that at the very least you have our sincerest sympathies. Though that doesn’t pay the margin call we understand.

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David Stockman says we’re headed for a dramatic crash “but especially in tech.” (Video)

Heady days in the Oval Office.

The interviewer rightly points out that Stockman has been calling for a crash for a long time. In March he announced to the world that a crash was imminent and that he was entirely in cash. The market has been up dramatically since that call.

But fundamentally Stockman is right. All the money created by the world’s central banks is floating around out there in financeland (it might not have found its way into YOUR pockets but many Wall Street pockets are full) and that money is tinder just waiting to catch fire.

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Is the mood of the Fed Chair the most important factor in the stock market now? Yellen gives the “green light” for Dow 18,000 (Video)

Sadly it probably is the most important factor. Stocks used to reflect the health or lack of health of commerce. Now though, more than ever, the market flexes on the whims of the central planners in Washington and that is a shame.

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10 peaking megabubbles signal impending stock crash (?)

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.

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Are we looking at a “global deflationary shock” triggered by the Fed?

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.

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Reverse Robin Hood?The Fed through QE is shifting resources from the poor and middle class to the rich.

In an earlier post we mentioned how Washington DC has thrown in with Wall Street. And why not? That’s where the money is, where it continues to flow, and through our current system of crony capitalism will continue to flow until people say “enough.”

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