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Have We Just Reached Peak Stock Market Absurdity?

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Have you ever wondered how tech companies that have been losing hundreds of millions of dollars year after year can somehow be worth billions of dollars according to the stock market?  Because I run a website called “The Economic Collapse“, there are naysayers out there that take glee in mocking me by pointing out how well the stock market has been doing.  This week, the Dow is flirting with 21,000 and the Nasdaq crossed the 6,000 threshold for the first time ever.  But a lot of the “soaring stocks” that have been fueling this rally have been losing giant mountains of money every single year, and just like the first tech bubble this madness will eventually come to an end in a spectacular fiery crash in which investors will lose trillions of dollars.

Anyone that cannot see that we are in the midst of an absolutely insane stock market bubble simply does not understand economics.  Every valuation indicator that you can possibly point to says that we are in a bubble of epic proportions, and history teaches us that all bubbles inevitably come to an end at some point.

Earlier today, I came across an article by Graham Summers in which he persuasively argued that the price to sales ratio indicates that stock prices are far more inflated than they were just prior to the great stock market crash of 2008…

Sales cannot be gimmicked. Either money comes in the door, or it doesn’t. And if a company is caught messing around with its sales numbers, someone is going to jail.

For this reason, Price to Sales is perhaps the single most objective and clear means of measuring stock valuations.

This metric, above all others, you can point to and say, “this is definitively accurate and has not been messed with.”

On that note, as Bill King recently noted, today the S&P 500 is sporting a P/S ratio that is massively higher than it was in 2007 and is only marginally lower than it was during the Tech Bubble (the single largest stock bubble of all time for most measures).

To me, looking at profitability is even more important than looking at sales.

Large tech companies such as Twitter certainly have lots of revenue coming in, but many of them are deeply unprofitable.

In fact, Twitter has never made a yearly profit, and over the past decade it has actually lost more than 2 billion dollars.

But despite all of that, investors absolutely love Twitter stock.  As I write this article, Twitter has a market cap of 11.5 billion dollars.

How in the world is that possible?

How can a company that has never made a single penny be worth more than 11 billion dollars?

Twitter is never going to be more popular than it is now.  If it can’t make a profit at the peak of its popularity, when will it ever happen?

And guess what?  ABC News says that Twitter actually just reported a decline in revenue for the most recent quarter…

Twitter has never turned a profit, and for the first time since going public in 2013, it reported a decline in revenue from the previous year. Its revenue was $548.3 million, down 8 percent.

Net loss was $61.6 million, or 9 cents per share, compared with a loss of $79.7 million, or 12 cents per share, a year earlier.

The only reason why financial black holes such as Twitter can continue to exist is because investors have been willing to pour endless amounts of money into them, but now that bubble is starting to burst.

In his most recent article, Simon Black discussed how Silicon Valley investors are starting to become more cautious because so many of these “unicorns” are now going bust.  One of the examples that he cited in his article was a company called Clinkle…

(Given that investing in an early stage company is high-risk, investors might provide a few hundred thousand dollars in funding, at most. Clinkle raised $25 million.)

The company went on to burn through just about every penny of its investors’ capital.

There were even photos that surfaced of the 21-year old CEO literally setting bricks of cash on fire.

At the end of the farce, Clinkle never actually managed to build its supposedly ‘world-changing’ product, and the website is now all but defunct.

Most of you may have never even heard of Clinkle, but I bet that you have definitely heard of Netflix.

Netflix has revolutionized how movies are delivered to our homes, and that revolution helped drive movie rental stores to the brink of extinction.

There is just one huge problem.  It turns out that Netflix is losing hundreds of millions of dollars

Netflix might be my favorite example.

The company’s most recent earnings report for the period ending March 31, 2017 shows, yet again, negative Free Cash Flow of MINUS $422 million.

Not only is that a record loss, it’s 62% worse than in Q1/2016, and over twice as bad as Q1/2015.

Netflix just keeps losing more and more money.

But even though Netflix is losing money at a pace that is exceedingly difficult to imagine, investors absolutely love the company.

I just checked, and at this moment Netflix has a market cap of 68.4 billion dollars.

Sometimes I just want to scream because of the absurdity of it all.

Companies that are losing hundreds of millions of dollars a year at the peak of their popularity should not be worth billions of dollars.

Nobody can possibly argue that these enormously inflated stock prices are sustainable.  Just like with every other stock market bubble in our history, this one is going to burst too, and I have been warning about this for quite a long time.

But for the moment, the naysayers are having their time to shine.  Despite the fact that U.S. consumers are 12 trillion dollars in debt, and despite the fact that corporate debt has doubled since the last financial crisis, and despite the fact that the federal government is 20 trillion dollars in debt, they seem to be convinced that this irrational stock market bubble can keep inflating indefinitely.

Perhaps they can all put their money where their mouth is by pouring all of their savings into Twitter, Netflix and other tech company stocks.

In the end, we will see who was right and who was wrong.

 
  • GSOB

    Be the first to comment.

    • JdL

      I don’t pick up that book of fiction, fantasy, and self-righteous narcissism unless there’s a good reason to, which happens once every few years. Why don’t you tell us what those verses say, if you want a response?

      • JC Teecher

        I bet you read Harry Potter to your kids though.

      • GSOB

        He commands a response from you.

        Please respond to Him while there is still more time to learn about reality.

        Acts 17:30

  • GSOB

    Join the discussion…

  • GSOB

    Psalm 148:13

  • GSOB

    1 Chronicles 29:11

  • ALWAYSTOMORROW

    I find it interesting how someone can believe in god and in the stories in the bible but don’t believe why stock valuations are what they are.

    I find both difficult to believe and understand.

    • Steve

      Alwaystomorrow We have a loving/Caring GOD who gives us a CHOICE wether to believe or NOT, Your internet name tells me a lot

      • Carl

        God is neither loving nor caring. He proved that when he condemned the entire human race and animals to a life of potential hell on the earth for the crimes of 2 people. Whom none of us have ever met.

        He rewarded satan with leadership over the planet.

        He has committed genocide hundreds of thousands of times over.

        He has breathed deeply the smell of animals being slaughtered by the hundreds of thousands and loved every minute of it – it is in your bible.

        Do we really have a choice to believe or not? Or is our choice made by chance from the birth canal we are born out of.

        Then the indoctrination begins: first with our parents feeding us all the brainwashing they received from their parents and back down the family line. Next it is the schooling we receive and the interaction with our peers and so on down the line.

        • ALWAYSTOMORROW

          I believe we do have a choice to believe or not.

          My beliefs are 100% different from my upbringing or schooling.

          • Carl

            Sure as an adult you have more of a choice but as a child you get taught what your parents know. – Which for many is not a whole heck of a lot since most adults don’t do any studying beyond what is required reading in school.

            But for many they just go along with whatever they are taught, never questioning anything. That’s why the USA has so many people that say they are christian, when most are agnostic at a minimum.

            Now as to having the choice about what god we believe in that is another question as people usually believe whatever they are taught as children. Plus all religions claim their god is the true god so you have that also.

          • ALWAYSTOMORROW

            Even as a child I knew that what I had drilled into my head 24/7 just didn’t make sense.

            And for thinking and for asking questions and for using logic I was labeled a troublemaker and a rebel.

            You are correct though that most people absorb what they are taught as a child and pass it on generation to generation.

          • anonymous

            I was raised Christian. I believe there is a God. Now do we know our Creator’s name? I don’t think that’s possible. So to be claiming we do because a collection of dead sea scrolls were translated over and over again by people with their own special interests, seems ignorant.

          • Carl

            But you still can’t shake the whole god thing that you were taught. It is hard to get past that one.

            Glad to see you are awake and enlightened. Yes the bible was written to get a conditioned response from the general public and keep them controlled.

          • anonymous

            I’m sorry but I’ve experienced too many miracles to believe there isn’t a God. I’ve witnessed demonic possession. I do believe there is a spiritual dimension that we are being protected from. I just not as quick to believe everything I read nowadays.

          • Carl

            If you say so. There are inter-dimensions which can account for supposed possession cases as some can breach into our world but this does not prove the christian god, islamic god or any other god of the major religions exists.

            Many times a persons emotional state (which we may or may not know because of the masks people wear) attracts residual energy that is left behind when a person who is high frequency on the evil or even moral scale dies. This energy depending on how extreme said person was can linger and a living person can pick up on this if you will.

            That is why some people will witness super natural activity while others feel or see nothing. It depends on their energy wavelength they are giving off.

          • Cinderella Man

            Wow that is the most nonsensical answer I’ve ever read lay off the drugs Carl

          • Carl

            Almost as nonsensical as the talking donkeys and such in your bible. Not to mention christians justifying slaughter of people because god did it.

          • GSOB

            Genesis 50:20-21

          • JC Teecher

            Your self centered view of the world and life is the same anti-God position that Esau took in his former life, before being born into the flesh.

            that is why and how God could say with all honesty, that even in the womb, Esau I hated, and Jacob I loved.
            I wonder how He, God, your Heavenly Father, feels about your sorry azz, Mr.” I am bigger than God”…Carl?

            To be on the wrong side with God, is a bad bad sulfur smelly place to be.

          • Carl

            Nice to know that your loving god picks and chooses and plays favorites with the humanity he supposedly created. What happened to loving all his creation equally? Makes sense since picking and choosing is another human emotion and human mindset attributed to GOD.

            So we can learn from teachers post that christians should never tell the unbelieving that god loves them because as with esau and jacob he does not love them and does in fact hate them.

            Not that I care one way or the other just saying save your breath with your passive aggressive god loves you nonsense.

          • anonymous

            If The Creator created us with free will, wouldn’t that allow us to choose whether we love The Creator? Does that mean the creator needs to love The Creation? Isn’t it possible that The Creator has free will as well? If you want to test God, maybe ask and pray that you were never created. If God is indeed all-powerful maybe your request will be granted and the truth will be revealed. In fact, I dare you to.

          • GSOB

            A believer’s triumphs are all in Christ

          • anonymous

            No. There were four of us holding this brother down while something was trying to escape his body during prayer. I believe there are inter-dimensional beings, some call them demons. Whatever you call them, it felt evil.

          • JC Teecher

            There are real demons, on and around the earth, but we can’t see them, because they are in another dimension.

            Some, or most, are those from the disembodied wandering souls/spirits of the hybrids/giants/gibbowr in the Hebrew, pronounced ghib-bore.
            They are one and the same as those that were the results of the copulation between earth women (daughters of Adam) and the Fallen Angels aka Nephilim.

            Man has changed the definition of Nephilim, to mean giants in some circles, but the root of Nephilim is naphal, or “fallen ones”. The giants only fell when they died or stumbled, as they were never in another dimension like their fathers.
            Little David sure made one big one fall, when his sling drove a skipping stone into his brain. It may have just knocked him unconscious, but when David cut his ole big head off, it was finished.

          • JC Teecher

            There are many demonic entities in the space between this dimension and the dimension where heaven is. One such demonic angel, is called the Prince of the kingdom of Persia. Daniel 10: 13.

            To give you an idea of how powerful this demon is, he withheld/ wrestled, with the Archangel Gabriel three weeks, and kept him from coming into this dimension where Daniel was, until Michael, the most powerful archangel, intervened and gave this ole prince of Persia a but whipping.

            Back about 15 years ago, after fasting and prayer, I was taken into another dimension, and there God wanted me to experience having a demonic spirit manifest/jump in , my body.
            I can assure you, or anyone else, you do “not” want to mess around with unclean spirits, or try to conjure up the dead. it ain’t a pretty sight. Fortunate for me, God had a helper, probably an angel, or previous holy man, that had passed on from this earth in the flesh, to help me with the exorcism of the darned entity. he wanted me bad, and tried to get back in, but I rebuked him, In the name of Jesus Christ, and with that authority, no demonic spirit can remain in or around your presence. I will never forget that face, as he was fading away with his outstretched arms and hands, trying to get back in my body.
            In another vision/ out of body experience, I had about a year or so ago, I was involved in the removal of a demonic spirit in a man, and that is still like a replay in my mind, of what all transpired, with the colors of everything around us and even the smells.
            I don’t know if it is something future to come, as i can only imagine, but it sure was real.

            Now hear this, and don’t be too quick to write it off. The entities that are well known and documented to a lot of people, most still living, called aliens or extraterrestrials, are one and the same as the disembodied souls/spirits of the gibbowr/giants/hybrids. They were super intelligent with certain things like metallurgy and with things that were taught to them by their angelic fathers, via Satan…knowledge of good and evil, when they were in the flesh.

            that is even compounded now that they are in spirit, with self made coverings of “vegetative” like material, but they can not duplicate the flesh that God has created. Can they be killed? Only those that are hybrids, that they have created by stealing DNA from humans, and birthing, or from injecting their DNA into humans, and flesh woman has birthed. The do come back and take the hybrids that have been produced through the wombs of women.
            Do they take them all? I don’t know, but from some of the freaky frack people in the world today, I have to guess, they don’t.

            Why am I telling all this? Because it is truth and we are late in the game.
            The clock is ticking on down and we are getting very close to the end of days. The sightings of these demonic beings/aliens will increase more and more, because they know that soon, their fathers will be back on earth, when Satan is booted out of Heaven, along with His 7000 fallen angel army, that Michael and his angels are now holding.
            It will happen as foretold, and in the last five months of Satan’s reign, as Antichrist; these gibbowr/aliens/locust army, will come out of hiding inside the earth and in the deep parts of the oceans.
            Why? Because that is the way God wants it. They will do part of His work, for to “sting” torment the unsaved, but not kill them, to try their hearts, to see if they may turn before they burn (carl).
            Many that claim to be saved, but just go thru the Sunday motions for a show, they will be in a whale of a predicament when these bad boys, and girls, are on the earth, because they will not have the protective covering blood of the Lamb.
            Sorry to spoil the fun, but it is better to be shocked a little now, than to shocked all at once, later; when it is too late

          • JC Teecher

            More like, keep them under control, so they don’t self destruct.
            The flesh is weak, and most, probably 90% or better, would not be able to keep any moral compass without a loving Creator, and His guidelines of living.

            As an example, look what happened with God’s own chosen people’s during the Exodus.
            They were removed from 400 years of slavery, and oppression. They were fed the perfect food source, and given plenty of water. They were provided with shade during the day, and warmth at night, and all they had to do was walk.

            They pizzed and moaned, and bellyached for more, and had little faith in a better land flowing with milk and honey…literally. When Moses went up on the mountain, to visit the Creator, to receive the Commandments, the flesh took control of the minds, and they made idols of metal, and most likely wood also. they wanted to worship an image that couldn’t tell them how to live. Kinda like you Carl.

            They then began having sexual orgies and delving into the nasty and perverted sexual pleasures. Even though God does not tell us everything that went on, it started getting bad and most likely involved homosexuality, and child rape, and possibly Beastiality.
            How long would they have lasted if that lifestyle continued, and soon disease would have surely consumed the whole population of them, estimated to be over 2 million.

            It was so bad by the time Moses returned, that God was ready to eliminate all of them except the families of Moses, of which He would start the generations of Adamic/Hebrew/Caucasian peoples, over again. If not for Moses constant pleading, it would have happened that way.
            Humans without a moral compass, become unstable and eventually would self destruct. If left alone in this world, the liberals would be out of luck in less than a century, and wipe themselves off the face of the earth.
            Because, they would have no God, no laws, and no limits; Soon everyone would be disease infested, drug crazed sex feigns, and cannibals.

          • Carl

            So they had god actually feeding them and walking with them in the almost flesh and still went all nutso. Doubtful.

            Besides how long was moses up there getting those commandments all chiseled out? It must have been years and as you know people have short term memories when it comes to things.

            Not to mention I am sure NOT everyone was participating in the depravity.

            People would prefer chains at least they know what is going to happen day after day. Walking aimlessly without knowing how long would be akin to torture.

            With your logic without god and laws people would be doing all kinds of bad and depraved things. To this I say NONSENSE. Because there are many that go to church and read their bibles and believe in god that still do these very sick things you are blaming on the unsaved.

            What I have found with people is that regardless of their religion their proclivities remain and their true natures stay the same. The only difference is that they go about hiding these things from people.

            You should research the triune brain to get some understanding as to why some people are more moral than others.

          • GSOB

            John 17:3

          • GSOB

            Genesis 3:15

          • GSOB

            Those that have done ill are willing to draw in others to do the same.

          • GSOB

            Genesis 3:8

    • JC Teecher

      Just take a look at some of the DJIA (DOW) 30 companies. Especially the companies that do not actually create anything but digital transaction, the financial companies, and Credit Card companies like American Express and Visa.
      Way over valued and will be the first ones to crash and break in half when the correction hits, and possibly worse when the markets go beyond “crash” status.

      Even McDonald’s is way over valued that makes it’s profits off fast food. When the shtf, Mickey D’s will be one of the first to htf, as people are more worried about putting gas in their vehicle at a probable $5.00 to $10.00 a gallon cost. Today, the average drive thru customer spends nearly ten bucks for one meal, and to feed a family..over 25 bucks. It will be seen as a luxury, instead of a part of every normal day life, purchasing.

      At least half of all these 30 companies of the DJIA, are way over valued, and the proof will be in the (stock price) pudding when all h e double L, breaks loose later this year.
      Maybe I will be wrong, and hopefully I am, but the bubble has to loose some air some time, or it will be an even bigger explosion later on, that affects more people.

  • pulltheweeds

    The market is completely crazy . It used to be an iron rule that inflation went along with a bullish wall street .

  • Liberty First

    Largely accurate article, except do not estimate the degree to which cheap and easy money can prop things up.

    • Guest

      Good point. Even the smartest guys out there in the alternative financial media are astounded that it has continued this long.

  • Cinderella Man

    Well of course it’s confounding! It’s a scam. Beyond what Madoff could have dreamed. I will never put a cent into stocks. I invest in solid tangible real things. Land and hooves. Anyone who invests in the market today all I can say is a fool and their money are easily parted.

  • Bill

    I make a serious comment of gratitude and the monitor got me. Is gratitude a conspiracy theory?

  • Carl

    This is for Cinderella. Google the title:

    Trump-Pence Bringing Over 1,000 Illegal Muslims From Oz To Give Them Free Food, Rent, Cash In Our Towns

  • china near complete collapse

    as long as fed got pedal to metal on the printing press.stocks will go higher (until they don’t),virtually all the tens of trillions printed ,virtually none (zero)make to ground zero ie the private sector,all to wurlstreet and the banksters and big gov’t

  • Kkrfinan

    Krfinan – I’ve been hearing about this economic collapse for 8 years now but it hasn’t happened. Certainly things aren’t good in this country with tremendous debt & anemic growth. We had a horrible president but at least now we have a good one. I keep hearing about in the long term we are going to have a collapse but as the late great Louis Rukeyser once said “In the long term we’re all dead”. In 100 years from now if this all happens I’ll be dead as well as all the people on this blog so it won’t matter to any of us then. The only thing collapsing is gold & silver which were supposed to skyrocket because of our economic problems.

    • ALWAYSTOMORROW

      Have you ever given any thought as to the possibility that no one actually knows what tomorrow brings?

      There is one thing for sure, there’s ALWAYSTOMORROW.

      • NEVERTODAY

        Are you a master procrastinator? What’s with your name?

        • ALWAYSTOMORROW

          I will tell you tomorrow. 😉

          • NEVERTODAY

            Cute answer ;-D

        • Mr.Cipher

          He’s a proctologist.

        • Jarhead0369

          I’m a master debater and a cunning linguist.

          • NEVERTODAY

            I’m a fisherman, who’s also a master baiter. I know how to handle sea men.

          • Jarhead0369

            I find that hard to swallow.

          • NEVERTODAY

            The naval academy produces some of the finest sea men around. I’m sure with enough practice you could stomach it.

          • Jarhead0369

            Nope.
            I spent four years around the squids.
            They keep the boat afloat, but it doesn’t float my boat.

          • NEVERTODAY

            Don’t worry, your secret is safe with me. Loose lips sink ships 😉

    • Carl

      ” In 100 years from now if this all happens I’ll be dead as well as all
      the people on this blog so it won’t matter to any of us then.”

      Isn’t that crazy. That in 100 years we will all be dead. I have been going to estate sales to find various tools on the cheap and to see these houses stuffed full of stuff just gives me pause. What is the point of all that material stuff? Then when you dead it’s sold (if the kids don’t want it). It just seems like a waste.

      I can’t imagine what the estate sales of some preppers will look like down the road. I would imagine like in the fifties when people built their underground bunkers in case the communists came a knocking – which they never, ever did.

      • Cinderella Man

        You are too stupid to be alive Carl

        • Carl

          Keep putting all your hopes in your boyfriend trump cause he be dealin:

          Trump Explans Why He Flipped On NAFTA: Canadian, Mexican Leaders Called Me To Renegotiate

          and those deals are NOT going to benefit the average american. Just his rich fat cat buddies.

          • Cinderella Man

            You have no idea what they are discussing or proposing in regards to NAFTA Carl. So quit trying to create fake outrage trying to paint President Trump as a rich elitist that doesn’t care about working American families. You are mistaking him for Hillary.

  • Canadian

    I think about the appending economic collapse daily, and it makes me really confused about how to do conduct business also when I have to fly across country for a week to conduct business and constantly worrying that I may not be able to get back home. Should I invest in realestate, or other projects, set up a shop. Etc.
    It really does get exhausting knowing that any moment our currency will be useless, and what may happen following the collapse.

    • anonymous

      I hear you. I try to just live in the moment and not worry about tomorrow. I like to practice acceptance. Preparation is also wise. Water, food, maybe a small gas generator. Network of people you can trust.

    • JC Teecher

      I agree, and was intrigued by your use of the word, “appending”. Had to google that one and see if I had a new word to use in my writings.
      Not trying to be a smart azz, but I think you meant ….”impending”, as in impending doom.
      Have a nice day..’eh’.

  • Bill

    Yes Mable, the market does read the tea leaves. It used to be six months out but now with modern tech and instant news it is down to about two weeks……perhaps someone knows that Kim is “moving” to Russia in a couple of weeks…..and new leaders have been “chosen” for both North and South Korea…… Euphoria is in the market!!!

  • JC Teecher

    I was told that the stock market is based on hype, back in the 80’s when I dabbled with it. I saw millions of dollars go into a company that was going to be a sure thing, in the housing construction industry. I took a small gamble, but some took 100k+ gambles and lost their buts after about ten years.

    The brokers made a lick, and the lawyers that handled the Class Action lawsuit, made a “big” lick. In fact, they had the backing of the crooked feds, so that they milked the whole thing dry, before making a settlement.

    Lucky for me, it came in a year that I had better than average profits/income, so I got to write off the loss and keep that years profits, instead of paying the IRS, that should be done away with.

    Now, this article is actually the writing on the wall, or should be, to people that are too vested in “hype”. The hype of potential profits, is based squarely on greed. There are other ways to invest $$ that is way less risky, and have more than paper and a cheap promise for a return.

    The markets are like a ticking time bomb on a seesaw. Will it explode on the upswing or the down. It will explode one day, as history does repeat itself, and until that day, (probably, more than likely, before the end of this year), it will seesaw just enough to keep people “hyped” up, that they can feel good about pumping their hard earned dollars into it.

  • Jeri Brace

    Cookin the Books on steroids. we all know what happened to Benard Ebbers of Worldcom & Kenneth Lay. the crooks on wallstreet are living lavishly on borrowed time.

  • Could the stock market be the same situation as “Bernard Madoff” type manipulation? It doesn’t seem right to me. I don’t know anything about it, but it seems to be run by the man behind the curtain like in the wizard of oz.

    • Jeri Brace

      it’s all about making bets. you can invest money (Bet) on a stock to lose money & you win or vice versa. The Casino we call Wall street is about to shut down & when it does their won’t be enough Kleenex to wipe their eyes dry.

    • J.L.W

      Far more complex and sinister than that.

      • socalbeachdude

        False.

  • Jeri Brace

    I went to a seminar years ago to learn about the stock market & it is amazing how much of it if not all of it is run like the MGM Garand.

    • Jarhead0369

      MGM Garand?
      MGM: a casino and entertainment company.
      Garand: a fine classic military rifle (M-1) in 30-06 caliber.
      WHICH IS THE BETTER LONG TERM INVESTMENT?

      • anonymous

        Laughing out loud. I was hoping someone else would notice that. Better investment? Definitely the rifle.

        • Jarhead0369

          AMEN!
          investment |inˈves(t)mənt| noun
          1 the action or process of investing money for profit or material result
          • a thing that is worth buying because it may be profitable or useful in the future

          Like seat belts and fire extinguishers, better to have it and not need it…

          • anonymous

            I agree, I wasn’t being facetious.

          • Jarhead0369

            Never thought so.

    • liberals are mentally ill

      M1 Garand ?

  • Cinderella Man

    We have been in the Greatest Depression since 2008. I thought for sure in 2010 that was the end. The biggest reason why people don’t feel like we are in as bad of shape as the dirty thirties is their 401K came back. Not only back but bigger. That’s main street’s part of this false recovery. The illusion of having money a safety net. Wrong. That money is at high risk of being lost. Through fraud from your investment banker. Wolves of Wall Street? Through fraud from the money printing of the federal reserve? You can’t save. No interest. No CDs. So the rubes are set up for this game. The longer the rube keeps in the game the more he loses. Sounds familiar. Sounds like a casino. I honestly hope for a world economic reset but somehow we just keep shuffling along year after year.

    • JC Teecher

      Yep you are right, and also take into account why it’s hangin on, ..”old Money”.
      Old people that have made it pretty good and saved, paid off their houses/real estate, are dying and leaving a nice fat nest egg to their children and grand children.

      Younger boomers are still retiring at 10,000 per day, and about half of them are well off, and seeing the writing on the wall, so they are running through that cash by leaps and bounds before they get too old and feeble to enjoy it.

      They are what is keeping the economy pumping as well as it is.

      The new camper and motorhome business is booming, and the availability of good used models flooding the market, at cheap prices, is a tell tale sign. We have been shopping around, and the deals are unbelievable. Early 90’s Motorcoaches 32 -36 foot, as cheap as 6 to 7 grand, excellent condition, with less than 150,000 miles on some, and loaded to the gills with options. Sold new for nearly 100k and some over.
      Unbelievable deals.

      • Cinderella Man

        I believe it. But the younger generation the millenials are broke. In heavy debt. A lot of desperation there. My point was that people working today are in trouble. No social security no pension. An IRA or a 401K are your only options. They won’t help you buy physical gold or commodities. They just want you to invest in the scam. The stock market has failed to be the bellwether for economic health since QE1 it’s all been federal reserve money printing stimulus. The man or woman on the street sleeping on benches and cars tonight knows there has been no recovery. Every business has either been stagnant or in bankruptcy since 2008. But as long as the busy soccer mom thinks it’s all good every time she opens that quarterly earnings report from friendly Mr Investment Banker and sees growth. But in reality soccer mom is barely hanging on like everyone else. Credit card mortgage car payments daycare Obamacare so on. One paycheck away from disaster. Its gonna happen again. Much worse than 2008. I’m getting restless of red alerts and blood moons. If I see Lehman it’s on.

        • JC Teecher

          Lol! Yea, CM, the Millennials and the younger of the Gen X er’s are in some deep do do.
          They are leveraged to the hilt on plastic, and one monkey wrench thrown into the monthly cogs of paycheck to paycheck, and look out, for she is gonna blow.

          I would not buy a new car today under but one circumstance, the numbers on power ball aligned. lol, yea I ain’t holding my breath on that either.

    • SnodtBlossom

      You’re ridiculous. I know life sucks around you on your girlfriend’s radish farm, but I see rich people all over the place and I have so many employment agencies calling me that I’ve had to change my call greeting to tell them which companies I won’t accept.

  • socalbeachdude

    Yes, we have, but it could get worse!

  • JC Teecher

    What if, the current SS Retirement system was overhauled, and employees had the option to keep 50% of their SS deductions, and either save or invest in what they so choose? Or, maybe not save or invest at all.

    • Carl

      SS deductions are actually 15% not the 7% that employees see taken out of their paychecks each week. So 3.5% would be a pretty nominal amount to save.

      I am not sure why employers agreed to pay 1/2 of the SS anyway. I guess because it is a good tax write off for them. Kind of like the government paying them to hire people.

      • JC Teecher

        …”I am not sure why employers agreed to pay 1/2 of the SS anyway. ”

        They agreed the same way that a handful of the “financially sound” banks in the 2008-9 bailouts, agreed to taking billions of dollars, that they did not want or need.

        They were “forced” into compliance by the mafia gov. that mandates a certain amount of control over peoples lives.
        Remember the crashing of the Jet plane into the Hudson River in New York City? It had aboard it certain executives, some from the Charlotte NC based banks that did not want to comply with Odram’s admin. demands to take bailout funds. New jet engine turbine blades are, or used to be, tested by throwing whole frozen Turkeys into the high speed turning turbines. Live and soft birds are no problem for turbine blades.
        An eyewitness, aboard the plane, was sitting in a window seat and saw what he described as a rocket, hit the engine near him, seconds before the crash.
        Birds???? he said he never saw any birds and he was soon silenced along with the reporter that interviewed him shortly after he was rescued off the plane.

        Wake up people. The coming beast system will be 100 times the lies and delusion put upon the masses, compared to what has been done already. They are already prepped for it; even Christians and the pre-trib fly-away doctrine, which is rooted in the lies of Satan.

        • socalbeachdude

          Banks did not get a single penny of funds “given” to them by the US government through its TARP and other programs or by the Federal Reserve. What they got were LOANS AT VERY HIGH INTERS+EST RATES all ow which we very quickly repaid as soon as they were allow to repay them.

  • XSANDIEGOCA

    This is so reminiscent of the Dot Com Bomb.

    • socalbeachdude

      This is now the Dot Com Bomb on STEROIDS.

      • natxlaw

        Dot com bomb on full blown roid rage soon. It is not going to be pretty. Pensions are going to be lost.

  • J.L.W

    Definitely one of my favourite articles of yours.

  • steven454

    There are multiple layers of collusion going on here between the government and wall street:

    – stocks being high gives the appearance that the economy is doing well which makes the government look good. This was especially prevalent during the 16 years of the BushBama administration.
    – Low interest rates force retirement savers out of safe investments into the stock market. And guess who controls interest rates?

    The FED swears that it’s decisions are not politically driven, but if corporate america can make bitches out of the supreme court (see Citizens United), they can do it to the FED. Especially considering where most of the FED members used to work (see Goldman Sachs).

    – so the government drives down the interest rates, which drives the savings of middle america into the stock market in droves, which drives up the stock market and sets these poor investors up to be fleeced by wall street. The stock market has turned into a wealth re-distribution mechanism. But instead of redistributing wealth from the top down (as in socialism, progressive taxation, etc.), it redistributes wealth UP, which contributes to the extreme accumulation of wealth by the 1% which we are seeing today, and the destruction of the middle class which we are also seeing today.

    In summation, corporate america – and especially the financial sector, aka “wall street” – has taken control of the government and is using it to enrich themselves and to turn the rest of the nation (us 99%ers) into slave/peasants.

    • JC Teecher

      Good points, Steven. In fact your summation of the whole stock trading/investing scheme, is a good read for the novice.

      Only a few smart ones can make the right buys, at the right time, and then get out/ cash out, at the right time to make a profit. some get lucky and are able to reap some pretty good rewards off their retirement funds, but way more loose in the long run.

      Even with seemingly smart buying, things don’t always add up. In the mid 80’s i bought a thousand shares of a company that had just secured patents on a medical machine/device, that would allow a patient in surgery, to be able to have their own blood cycled fast enough so that they never had to accept a blood transfusion.
      Voila’, a diamond in the rough at the right time, I thought, as aids was in the headlines everyday, and the main culprit, the HIV virus was caused via blood mixing between people. many had already contracted aids purely by accepting blood transfusions already infected. Another reason it never fully took off, was because of the “big” money and influence associated with the Red Cross. Too big too fail, like the American Cancer Society. catch my drift?

      I figured the stock would take off like a rocket, and in about ten years I would have been able to triple my investment,at the least.
      After 12 years, I was only up about a few hundred dollars, and I was bewildered. Then I read between the lines on the annual report, it was evident that the CEO, and board had one goal in mind, use their huge profits, of which they had made, and keep investing in more assets and technology, instead of showing the profits in the form of cash. They were rich on paper, but poor on cash, kinda like the middle class today.

      After nearly 13 years, I sold, and barely made enough to pay the broker and have a cheap weekend at the Beach.
      The corporation got use of my funds for 13 years for free.

    • socalbeachdude

      All interest rates that matter in the US economy are established by the $13 trillion a year US Treasuries markets and none are set by the Federal Reserve.

  • Ken

    The more money a tech firm looses, the better the market likes it. Absurd, and investors are going to get killed.

  • goldminer

    The stock market will continue to soar as long as the Banksters have endless money supplies that that they can create with a click of a mouse. Then pour it into the stock market using super computers that use algorithmic trading, and make trades in a fraction of a second. Huge amounts of money are being made this way. In this totally manipulated stock market. The markets will only crash when the banksters decide it is in their greedy best interests. But you cant fool with mother nature all the time.
    Right now. The natural pull on the markets, like gravity, is down. Eventually someone will run out of cash, make a mistake, or software error will cause the big crash. But for now things will keep mudling along.

    • socalbeachdude

      Banks do not have “endless money supplies” at all and in the US the Federal Reserve has been tightening ever since the fall of 2014. Banks themselves in the US do not invest in stocks on their own accounts and the the Federal Reserve is precluding from even owning stocks by the Federal Reserve Act.

  • seekless

    Who writes this..junk they mention Clinkle they do not go on to what it is.

  • seekless

    A company doesn’t need to be profitable for the stock to zoom, and why should it, that’s a old belief.

    • socalbeachdude

      Financial laws still fully apply and no asset such as a stock can “boom” legitimately when it doesn’t have EARNINGS behind it. For stocks that have no earnings but rather mounting losses THERE IS NO VALUE THERE WHATSOEVER in the stock from a fundamental perspective and when that company fails, all that a stock share represents is a share of a company to which there is no value at all and the shareholders will get 100% wipeouts on that stock as all the shareholders ever own in any company is the EQUITY of that company which is essentially the difference between that company’s assets and its liabilities.

  • seekless

    One never knows what is going to happen in the market..today F-Ford just had horrible earnings for ex.

  • Duckers

    Your’e trying to use logic on the markets – it can’t be done – if you believe the reasoning The FED Res was created to prevent all future market crashes, well since 1913 it’s had a 100% failure rate! – If the Fed can’t control the market then no-one can.
    I would class myself as a stock market expert – I do very well from it and have developed the ability to predict major moves. There are cycles at work within the markets that 99% of people have not got a clue about – these cycles are EVERYTHING to the market and they determine the big swings – the Nasdaq100 did not crash in 2000 out of the blue, the 2008 crash didn’t happen out of the blue – if you’d of known about the cycle you could have predicted them and forecast them DECADES in advance – DECADES!
    There is no way that I’m prepared to reveal what has taken me years to learn and test – but in it’s simplest form the markets are NOT random, they are doing something, that “something” can be used to forecast future turns etc.
    The question no-one every asks is “Why hasn’t the stock market ever gone bust and fallen 100%” and “How come it keeps on growing?”
    In response to articles like this – the BIG RESET is not going to happen, I published my thinking on that YEARS ago when you were being told gold would continue climbing in 2011 and that the US dollar was bust! – Not happened and it won’t happen anytime soon

    • GSOB

      Define ‘soon’

      • GoldenGirl

        GSOB, start reading Martin Armstrong’s blog posts over at Armstrong Economics. He writes a lot about cycles and has amazing AI in the form of a computer called Socrates, which forecasts quite accurately without the overlay of his own opinion. Peace to you, brother!

    • GoldenGirl

      Thank you, thank you for posting this. Sadly, most people won’t listen, as they follow the crowd and the crowd is always wrong.

    • Bruce

      20 Trillion is debt and growing and you apparently think all is fine. I don’t buy it, sorry. There is TOO MUCH evidence to the contrary. Although, I do appreciate another’s view and belief, I simply don’t believe your assertion!

  • Leif Erickson

    I never made enough money to invest in the stock market so crash away! I will be careful as I walk by tall buildings so I won’t get hit by jumpers who lost their fortunes.

  • randy wellman

    keep at it michael!….vindication WILL be sweet, and it’s coming SOON.

  • Leif Erickson

    What’s going to happen to all of those State pension funds that rely on Market performance? Those pension funds are already underfunded. Reduce benefits or raise taxes? A little of both maybe?

  • Richard O. Mann

    Sounds like a never ending LSD trip. But, they do end. Or turn into a bad trip. Either way, it’s never fun. A day of reckoning is coming. May not be today, or tomorrow, but there is one coming. And it ain’t gonna be pretty.

  • Carl

    Oh No. Looks like the shut down showdown is back on:

    Democrats Take Government Hostage: Threaten To Shut It Down If GOP Repeals Obamacare.

    They don’t want their leaders legacy to be destroyed.

    • Cinderella Man

      What are you? All you do is hate on everything and everyone everyday? Gahhh! Get a life!

      • Carl

        I am a jedi master also known as obi-wan. Put on the earth to train young neophytes like yourself in the truth about humankind and the realities of this world.

        There are no good guys in politics. Just deals to benefit the few while the many suffer greatly for their greed.

        • Cinderella Man

          Jedi master? Lol what are you like 12? You’re just mad you won’t ever get top comment lol loser

          • JC Teecher

            Yea…gone mad.

      • JC Teecher

        I think he is a paid shill for the left, or the underworlders (about the same). fartblossom couldn’t make the grade, so they got sbd and carl to shake things up. lol

  • Carl

    Looks like the democrats have got those republicans over a barrel as they say.

    They can indefinitely extend the budget a week at a time to stop the replacement of O-Care with T-Care.

    If I had to choose between the two I would choose O-Care since T-Care is just O-Care without the upfront subsidies. Besides Obama said if I like my subsidies I can keep my subsidies and I do like em, I like em a real lot.

    • GSOB

      John 6:27-30

  • socalbeachdude

    Express Scripts is airing dirty laundry in its nasty, very public Anthem divorce

    ESRX -10.77%

    http://www.marketwatch.com/story/express-scripts-is-airing-dirty-laundry-in-its-nasty-very-public-anthem-divorce-2017-04-25

  • socalbeachdude
    • GSOB

      Sweetwater is my store. You play any instruments?

  • socalbeachdude

    Housing’s echo bubble now exceeds the 2006-07 bubble peak

    http://www.oftwominds.com/blogapr17/echo-bubble4-17.html

  • socalbeachdude

    PANIC BUYING HITS WALL STREET STOCKS…

    Interest rates are again soaring upwards on US Treasuries and commodities prices including all of the metals are plunging along with grains and oil as demand falls and global gluts worsen dramatically.

    But hot money manic speculators – including lots of little moms and pops – have found the TICKET TO RIDE – US stocks! And panic buying of US stocks is now in full swing with the US markets setting all new record highs!

  • socalbeachdude

    J.Crew to cut 150 jobs and will not fill 100 corporate positions in a bid to save $30 million a year as the retailer loses out to online shopping trend

    J.Crew, the preppy clothing retailer, said Tuesday that it will cut about 150 jobs to trim costs. Like other retailers, J.Crew has suffered as more people shop online.

    http://www.dailymail.co.uk/news/article-4444448/J-Crew-cut-150-jobs-sales-retreat.html

    • Carl

      Meanwhile:

      CEO Drexler Amasses $350 Million as J. Crew Struggles

      • socalbeachdude

        Yep, and that is very typical of what is going on to day at major publicly traded companies.

        • Carl

          Exactly socal.

  • socalbeachdude
    • Carl

      Meanwhile:

      Coca-Cola CEO Muhtar Kent’s 2014 Compensation Grew 24%

  • socalbeachdude
  • socalbeachdude
  • socalbeachdude

    HOUSING BUBBLE BACK AND WORSE THAN EVER…

    GREAT AGAIN: Housing in ‘strongest seller’s market ever’…

    http://www.cnbc.com/2017/04/24/spring-housing-strongest-sellers-market-ever.html

  • socalbeachdude

    JUST LIKE 2007 RIGHT BEFORE THE CRASH!!!

    STOCKS SMASH RECORDS…

    http://www.cnbc.com/2017/04/25/us-markets.html

  • socalbeachdude

    Where’s the Love?

    iHeartRadio parent warns it may not survive another year

    IHRT -23.64%

    http://www.marketwatch.com/story/iheartradio-parent-warns-it-may-not-survive-another-year-2017-04-21-121035436

    • Carl

      I head about that. Amazing how these companies are able to survive year after year with those kinds of losses. Most businesses rig the books with debt up to their eyeballs and then when they can’t borrow any more they pull the plug, reinvent themselves and the gravy train starts ll over again.

      • GSOB

        Deuteronomy 15:1

        • SnodtBlossom

          there is no god

    • GSOB

      Psalm 86:5

  • socalbeachdude

    Stock Markets Sit Blithely on a Powerful Time Bomb

    How big is margin debt really, and how much of a threat is it to the stock market and to “financial stability,” as central banks like to call their concerns about crashes? Turns out, no one really knows.

    What we do know: Margin debt, as reported monthly by the New York Stock Exchange, spiked to another record high of $528 billion. But it’s only part of the total outstanding margin debt – which is when investors borrow money from their broker, pledging their portfolio as collateral.

    An example of unreported margin debt: Robo-advisory Wealthfront, a so-called fintech startup overseeing nearly $6 billion, announced that it would offer its clients loans against their portfolios.

    “The dream house. The dream wedding. The dream kitchen. The dream vacation.” That’s how it introduced it in a blog post this week. “We want you to have your cake and eat it too,” it said.

    Instant debt “without the hassle of paperwork,” it said. “We want our clients to be able to borrow what they need, when they need it, directly from their smartphones.” Secured by “your own investments.”

    It’s a great deal as long as stocks are soaring. Clients with at least $100,000 in their account can borrow up to 30% of the account value. It’s seductive: No required monthly payments and no payoff date, though interest accrues and is added to the monthly balance. The rate is as low as 3.25%. “How’s that for flexibility?” it says.

    That’s how margin debt is being pushed at the end of the cycle.

    http://wolfstreet.com/2017/04/21/shadow-margin-debt-stock-market-time-bomb/

  • socalbeachdude

    UBER LOSSES: HOW TO LOSE $3 BILLION A YEAR…

    Uber Is Losing Money At A Historic Rate

    With its day-to-day business burning through almost $3 billion last year, the company is in the league of the true money-losing giants.

    https://www.buzzfeed.com/matthewzeitlin/uber-is-losing-money-at-a-historic-rate?utm_term=.frmdzMpva#.uh2mjrJV0

    UBER CEO Plays With Fire…

    Brink of Implosion…

    https://www.nytimes.com/2017/04/23/technology/travis-kalanick-pushes-uber-and-himself-to-the-precipice.html

    • Carl

      Meanwhile:

      Travis Kalanick is the 35h richest person in tech and the 78th wealthiest person in the US with an income of 6 billion.

      No doubt Uber was started by investors and not his own money. So no worries on that front mate for the billionaire shall rise again.

      • socalbeachdude

        That jackass will be penniless when Uber stock totally implodes!

        • Carl

          He is a jackass and so is lyft. Have you seen their stupid commercials?

          • socalbeachdude

            Yep, and they are embarrassing and beyond phenomenally stupid.

  • socalbeachdude
  • socalbeachdude

    The last time this happened the markets crashed…

    A few days ago Charles Schwab, the investment brokerage firm, announced that the number of new brokerage accounts soared 44% during the first quarter of 2017.

    More specifically, Schwab stated that individual investors are opening up stock trading accounts at the fastest pace the company has seen in 17 years.

    17 years.

    Anyone remember what happened 17 years ago?

    Oh right. The Dot-com bubble burst.

    After years of unbelievable gains in the 1990s, the NASDAQ Composite index peaked at 5,132.52 on March 10, 2000.

    Simultaneously, during the first quarter of 2000, investors were rushing to open new brokerage accounts invest their savings in the stock market.

    The NASDAQ Composite subsequently fell nearly 80% over the next 2 ½ years, wiping out trillions of dollars of wealth from retail investors.

    The last phase of any bubble is almost invariably the euphoric shopping spree of an irrational public that buys stocks, real estate, etc. at record highs, foolishly believing that prices will keep rising indefinitely.

    That’s what happened in 2000.

    And that’s what seems to be happening today.

    Investors are once again clamoring to buy expensive, popular stocks at price levels never before seen in the history of the stock market.

    Company valuations are sky-high.

    At 26.44, the S&P 500’s Price/Earnings ratio is the highest EVER, except for two occasions: the 2008 crash, and the 2000 crash.

    At 28.93, the “Shiller P/E ratio”, which looks at company valuations over a longer-term, 10-year period and adjusts for inflation, is at the highest level EVER, except for two occasions: the 2000 crash, and the 1929 crash.

    Price to sales ratios are near the highest levels in at least 50 years.

    Price to book ratios haven’t been at this level since the 2008 crash.

    And the stock market cap to GDP ratio is the highest since the 2000 crash.

    Billionaire investor Paul Tudor Jones described these expensive stock market valuations as “terrifying” earlier this month at a closed-door asset management conference hosted by Goldman Sachs.

    Yet for some reason individual retail investors still believe that stock prices will continue to rise.

    According to Yale University’s Stock Market Confidence Index, for example, over 90% of individual investors believe that the stock market will rise in the next 12 months.

    https://www.sovereignman.com/trends/the-last-time-this-happened-the-market-crashed-21379/

    • Lorungee

      “Oh Oh…..Time to dump all my shares”. ” When my shoe shine boy gives ME stock tips, it’s time to get the hell out”. (Joseph P Kennedy, Sr.).

  • socalbeachdude
  • socalbeachdude

    Clothing retailer Bebe announces closure of all 175 of its stores

    http://www.cnbc.com/2017/04/21/retailer-bebe-to-close-all-175-of-its-stores.html

  • socalbeachdude
  • socalbeachdude

    There is one thing that could stop Amazon’s stock rally in its tracks

    http://www.marketwatch.com/story/this-could-stop-amazons-stock-rally-in-its-tracks-2017-04-21

  • socalbeachdude

    Over on MarketWatch a not long ago Rex Nutting wrote an absolutely excellent and brilliantly clear article on the US economy and stock markets which is a MUST READ if you want to understand what has really been going on over the past 40 or so years which got us to where we are today:

    Opinion: How the stock market destroyed the middle class – By Rex Nutting

    WASHINGTON (MarketWatch) — There’s something seriously wrong with an economy that nurtures a few billionaires but can’t sustain the middle class.

    Many factors have been blamed for the plummeting fortunes of the American middle class: globalization, technology, deregulation, easy credit, the winner-take-all economy, and even the inevitable tide of history.

    But one under-appreciated factor is a pervasive business model that encourages top managers of American corporations to loot their company for short-term gains, depriving those companies of the funds they need to build and enlarge, and invest in their workers for the long haul.

    How do they loot their company? By using large stock buybacks to manage the short-term objectives that trigger higher compensation for themselves. By using those stock buybacks to manipulate the share price, which allows them to use inside information to time their own stock sales. By using buybacks to funnel most of the company’s profits back to shareholders (including themselves).

    They use the stock market to loot their companies.

    “The ‘buyback corporation’ is in large part responsible for a national economy characterized by income inequality, employment instability, and diminished innovative capacity,” wrote William Lazonick, an economics professor at the University of Massachusetts at Lowell in a new paper published by the Brookings Institution.

    Lazonick argues that corporations — which once retained a sizable share of profits to reinvest (including investing in their workforce by paying them enough to get them to stay) — have adopted a “downsize-and-distribute” model.

    How did we get here?

    http://www.marketwatch.com/story/how-the-stock-market-destroyed-the-middle-class-2015-04-24?link=MW_popular

    • aj54

      the other mechanism for looting is the loot- they are paid too much, the average ‘top 5’ execs take 25% of all profits just for themselves, a number more than double that of a few years ago

    • Joe in OH

      Compounding the problem is the source of much of that buyback money i.e. the near zero interest loans at the expense of joe debter (joe taxpayer’s other title) courtesy of the Federal Reserve. In effect, the country goes deeper into debt to pay stock holders and corporate execs to destroy the jobs of the middle class. The repatriation of the $trillions held offshore by American corporations will likely be treated exactly like the TARP and string of QEs before it. A big boost to share prices and executive compensation with little to no capital investment or hiring.

  • socalbeachdude

    U.S. Steel suffers biggest stock plunge in its 26-year public history – By Tomi Kilgore MarketWatch

    Shares of U.S. Steel Corp. plunged 25% in morning trade Wednesday, putting them on course to suffer the biggest one-day selloff since they went public in April 1991, after the steelmaker reported a surprise quarterly loss.

    The previous biggest one-day drop was 18% on Oct. 15, 2008. The stock, which was by far the biggest percentage decliner listed on the NYSE, was trading at the lowest level seen since Nov. 8, 2016. At one point, the stock had nearly doubled after the election, to a 2 1/2-year high close of $41.26 on Feb. 21, before all the post-election gains were erased. Volume topped the full-day average of 19.0 million shares within 15 minutes after the open.

    The company reported late Tuesday an adjusted loss per share of 83 cents, compared with the FactSet consensus for a profit of 35 cents a share. Revenue of $2.73 billion also missed expectations of $2.95 billion. The stock has now shed 29% year to date, while the S&P 500 has gained 6.7%.

    http://www.marketwatch.com/News/Story/Story.aspx?guid={8B65F54C-7B4C-4872-A5DC-506D61E572A0}&siteid=nbsh

  • socalbeachdude

    The Most “Horrifying” Chart in the World

    Larry Fink is terrified.

    Fink runs BlackRock, the world’s largest asset manager. The company manages a whopping $5.1 trillion. That’s more than Goldman Sachs, Bank of America, or Wells Fargo. It’s more than the annual economic output of Japan, the world’s third-largest economy.

    This makes Fink one of the most powerful people on the planet.

    Obviously, you don’t climb to the top in Wall Street by being easily rattled. But right now, Fink’s nervous.

    He’s worried about “a lot of dark shadows that could impact the direction of the marketplace.”

    Today, consumer confidence is even higher than it was in 2007. And we all know how that ended.

    The S&P 500 plunged 57% over the next two years. The Russell 2000, which tracks 2,000 small U.S. stocks, dropped 60%.

    Sir John Templeton, one of the greatest stock pickers ever, famously said:

    Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.

    http://www.caseyresearch.com/articles/the-most-horrifying-chart-in-the-world

  • socalbeachdude

    The Crash Will Be Violent – David Stockman

    It is almost impossible to overstate the level of unhinged mania in the stock market, but still the robo-machines and knucklehead day traders just can’t seem to let go.

    They are essentially 12-year-olds on a bicycle defiantly screaming, look ma — no hands and a blindfold, too!

    Worse still, these daredevils have been indulged by the Fed and other central banks so long that they surely have come to believe flying blind is completely safe. After all, we can count at least 60 “dips” since March 2009 that resolved to the upside over and again.

    Altogether the S&P 500 now stands at 3.4X its post-crisis low, having generated an 18% annual return (including dividends) for nearly eight years running.

    To be sure, in an honest free market that very fact would be a flashing red light, warning that exceptionally high gains over an extended period necessitate a regression to the mean in the period ahead.

    But we have a central bank medicated market, not a free or honest one, so at the end of the day fundamentals don’t count. Instead, on the margin the stock market is driven by momentum, central bank liquidity and trader presumption that it will never be withdrawn.

    The reflexive dip buyers have ratcheted the market higher 45% without any plausible or sustainable case for it. Economic growth rates are deflating, productivity has slumped and corporate earnings have been sinking for nearly eight quarters.

    https://dailyreckoning.com/crash-will-violent/

  • socalbeachdude

    The Misleading Comfort of Calm – Doug Wakefield

    Without trillions added to global debt levels and speed of light computer trading programs that close their day at neutral, the image of “never decline” stocks would have cracked long ago.

    The problem with depending on a central bankers’ assisted bubble, is that it defies the laws of science, the history of bubbles, and human behavior. We expect this image of “calm and controlled” to go on without interruption. Yet this idea is irrational when considering the most complex system in our world.

    Stock markets have rewarded complacency since early 2016. Ignoring headlines on rising risk, debt levels, rates, and slowing growth has been seen as “wise”.

    Yet the fingers of instability in this mammoth financial sandpile grow longer and more in number with each passing all time high headline.

    The lessons of previous bubbles will come home to roost again unless history has no value, and the laws of science are altered.

    http://www.safehaven.com/article/43658/the-misleading-comfort-of-calm

  • socalbeachdude

    As Trump hustles to nail down a tax overhaul, he faces the biggest federal debt surge since Truman

    http://www.cnbc.com/2017/02/09/trump-faces-biggest-federal-debt-surge-since-truman.html

  • socalbeachdude

    NEEDLESS MARKUP MAY SOON GO EXTINCT…

    Neiman Marcus is now borrowing money to make interest payments on its debt

    http://www.marketwatch.com/story/neiman-marcus-is-now-borrowing-money-to-make-interest-payments-on-its-debt-2017-04-19

  • socalbeachdude
    • natxlaw

      I don’t know who would want to be with a traditional carrier any more. I get unlimited everything for 35 a month, and I could get it for 19.99 a month if I really wanted to by switching from Metro to freedom pop.

      • socalbeachdude

        True, and Verizon is one of the 30 stocks that comprise the Dow (DJIA 30).

  • socalbeachdude
  • socalbeachdude

    U.S. economy likely barely grew in first quarter: Atlanta Fed

    http://www.reuters.com/article/us-usa-economy-atlantafed-idUSKBN17T24C

  • socalbeachdude
  • socalbeachdude
  • socalbeachdude
  • socalbeachdude

    CREDIT CARD DEBT STARTS IMPLODING BIG TIME…

    “Surprise” surge in card defaults sinks Capital One, Discover

    https://www.bloomberg.com/news/articles/2017-04-26/surprise-surge-in-soured-card-loans-sinks-capital-one-discover

  • Carl

    Due to an extremely warm winter in many areas of the country tick populations are exploding. In order to keep the public safe the closure of all national parks has been ordered until the health department can get a handle on the tick population. “Imagine the thousands lives we will save from tick bites and tick related illnesses in 2017”, said the donald.

    • socalbeachdude

      Tick tock!!!

      • Carl

        LOL

        • socalbeachdude

          Sounds like a recent episode about head lice on “South Park!”

          • GSOB

            Exodus 8:16

    • Carl

      With that news the press went wild with questions. “People please,” the donald said. “I am currently in talks with the head tick to ask them to relocate for the summer.” The head tick refused to comment on the negotiations at hand. Stay tuned…

  • socalbeachdude

    CHINA: EPICENTER OF THE GLOBAL MARKETS CRASH…

    China markets reel as $1.7 trillion in shadow funds unwinds

    https://www.bloomberg.com/news/articles/2017-04-24/china-markets-reel-as-banks-unwind-1-7-trillion-in-shadow-funds

    China’s hidden debt stirs investor angst as defaults rise

    https://www.bloomberg.com/news/articles/2017-04-24/china-s-hidden-debt-stirs-investor-angst-as-local-defaults-rise

    • natxlaw

      Is the idea of banking regulation just a futile endeavor? You give them rules, they create shadow banks to get around them. In the U.S. we let them make the rules so that no one else can compete with them, then they break those rules and we bail them out.

      • socalbeachdude

        What we need to see in the US is a re-enactment of the 34 page Glass Steagall Act which separated financial concerns into:

        1) commercial retail banks

        2) investment banks and brokerages

        3) insurance companies and other financial entities

        And, they were not allowed to co-mingle assets and liabilities and the very same simple and straightforward regulation that is very easy to follow and abide by should be re-instituted once again to stop the nonsense in the financial system in the US.

  • socalbeachdude

    BLAME GAME BEGINS: DAFFY DONALD BLAMES DEMS…

    Trump says Democrats will be responsible for a government shutdown – as his health care repeal bill get pushed to next week

    President Trump sent out a flurry of tweets aimed at Democrats on Capitol Hill who he claimed were gunning for a government shutdown.

    http://www.dailymail.co.uk/news/article-4452666/Trump-says-Democrats-responsible-shutdown.html

  • socalbeachdude
  • socalbeachdude

    SHARES OF WORTHLESS TWITTER SOAR ON MORE BAD NEWS AND ENDLESS HORRENDOUS LOSSES…

    Twitter shares soar as social network reveals boost in user numbers – despite revenue decline and a $62M loss

    Twitter shares shot higher Wednesday after its quarterly update showed improving growth in user numbers, offsetting concerns over a decline in revenue.

    http://www.dailymail.co.uk/sciencetech/article-4447508/Twitter-upbeat-user-growth-despite-revenue-drop.html

    • natxlaw

      Imagine what the shares will do if that company ever makes any money. If it can do this well by losing 200 Million Dollars a year.

      • socalbeachdude

        By the way, Twitter stock was up another 4.9% again today as it continues to lose massive amounts of money!!!

        • TheLulzWarrior

          The difference w/ the Weimar/November Republic is that the Federal Reserve dollar is still an international trade currency…

          They can keep dumping Federal Reserve dollars on it all for now.

    • aj54

      What is their revenue? is the loss a rounding error, or could be made up if the execs weren’t stealing it all?

    • Lorungee

      Cooked to “well done” books maybe ?

  • socalbeachdude

    DELUSIONAL DAFFY DONNIE’S DOA TAX FANTASIES…

    Tax cuts for the middle class and an IRS return that fits on a single sheet of paper: White House unveils ‘biggest tax cut in history’ that kills the death tax and cuts corporate rate to 15%

    President Donald Trump will propose an overhaul of the tax code today that reduce the number of income brackets, eliminates the death tax and slashes the corporate tax rate.

    A childcare tax credit the president’s daughter Ivanka has been pushing is also on Trump’s list of priorities, according to CNN Trump will call for a reduction in the corporate tax rate to 15 percent, Treasury Secretary Steve Mnuchin confirmed this morning.

    The administration believes it will be offset by a subsequent escalation in economic growth. Mnunchin said Trump is ‘determined’ to get tax reform done and called him at 7:30 this morning to go over the details of the blueprint they’ll be releasing today. ‘This is going to be the biggest tax cut and the largest tax reform in the history of our country, and we are committed to seeing this through,’ Mnuchin said at a Washington D.C. conference on tax policy hosted by The Hill.

    http://www.dailymail.co.uk/news/article-4447796/Mnuchin-says-Trump-tax-cuts-biggest-history.html

  • Carl

    Dr. David Dao is now several million dollars richer. Why can’t I get dragged off a plane and make some big bucks.

  • socalbeachdude

    The First 100 Days…A Tale Of Two Trumps

    http://rense.com/general96/first100days.html

  • J.j. Cintia

    This isn’t surprising at all. With commodities languishing and retail markets collapsing, and the almost total eradication of the real estate markets, that money had to go somewhere. The government is just about broke so they’ve been lowering interest rates to practically zero. Government lying aside, the rates of actually inflation over the Obama years were actually like Carter’s. The price of just about everything I buy now is two or three times higher than when W. was President. That’s insane. With no savings instrument that can keep up with this obvious inflation, the money was pumping up a worthless and stupidly overvalued stock market. Companies that have virtually no assets and hardly any revenue are being valued like Exxon/Mobil. That’s crazy.

    • JC Teecher

      Remember when gasoline hit 4 bucks a gallon, and 5 on the West Coast?

      Most retail prices and almost all grocery items jumped up in costs. Only a few have come down, along with the costs of fuel.

      It is a cat and mouse game, and “we the people” ain’t the ones hacking up fur balls.

      • socalbeachdude

        Remember that within 4 months of that in July 2008 that the price of oil COLLAPSED BY 77% and the price of gasoline also collapsed by about 65% back in December 2008?

    • socalbeachdude

      Real Estate markets in the US are not collapsing at all but rather BOOMING creating yet another HOUSING BUBBLE of massive proportions. The federal government has nothing at all to do with setting any interest rates but all interest rates that do matter are set based on the yields (interest rates) in the $13 trillion a year US Treasuries markets for which demand is extremely high which is precisely why interest rates are so low as those bond prices are inverse to their yields. The higher the bids on the US Treasuries the lower the yields (interest rates).

      There has been and will be no inflation whatsoever in the broad general sense of inflation and commodities prices are COLLAPSING which is just a further intensification of the GLOBAL DEFLATIONARY SPIRAL where the prices of goods becomes significant cheaper in dollar terms.

      The prices of many things – particularly computers and electronics – has FALLEN SIGNIFICANTLY over the past 20 years and is now DIRT CHEAP compared to what it used to be with the capabilities far exceeding today the meager capabilities of those things back then.

      Yes, the stock markets are ABSURDLY OVERVALUED but that will be rapidly corrected very soon just like what occurred back in the Spring of 2000 when the Dow (DJIA 30) fell aro0und 60% and NASDAQ fell around 80% with many prior “dot com” companies totally going out of business and leaving their shareholders holding the bag with worthless shares.

      • J.j. Cintia

        Computers and electronics have dropped in price due to the overstock due to lack of disposable income. The prices of food and other essentials skyrocketed under Obama. Some products tried to disguise the price hike by selling much smaller containers, but I doubt that fooled anyone. I hear rumors that China is buying up real estate like crazy to dump US Dollars without spooking the currency exchange. Everyone can see the US Dollar is about to implode in purchasing power due to the continued influx of unwanted US Dollars now that trade has imploded too. China has merchandise stacked up at ports, and Europe is a basket case now.

        • socalbeachdude

          The US dollar will continue SOARING UPWARDS and is the most used and most desirable currency in the world. Outflows of money have virtually been STOPPED FROM CHINA causing most all of the deals in Hollywood to blow up and have severely curtailed real estate speculation by the Chinese around the world.

          China’s currency, the renminbi (RMB / Yuan) is the most egregiously overprinted currency in the world and has created (printed) more than $30 trillion in renminbi (RMB/yuan) over the past 10 years expanding its money supply to more than $34 trillion renminbi whose value is largely pegged to the value of the US dollar with very minimal float. During the same time the US money supply has only expanded by about $5 trillion while the US economy is nearly DOUBLE THE SIZE of the Chinese economy. If that dollar peg to the Chinese renminbi were to be removed the value of the Chinese renminbi would fall to nearly WORTHLESS as its value rests nearly entirely on the back of the us dollar.

          China March outbound direct investment slumps 30.1% as capital curbs bite

          http://in.reuters.com/article/china-economy-odi-idINKBN17K0ES

          • J.j. Cintia

            Yeah China came back to shop for bankrupt Hollywood studios. They appear to be paying off massive debts with their new currency. It saved them from a huge bank failure apparently. They still need to dump US Dollars. All that “Quantitative Easing” put way too much of this stuff into the World Markets. The US Dollar isn’t actually gaining value, the other currencies like the Euro are losing value. This stupid fantasy of “Free Trade” has bankrupted everyone and its a race to the bottom now. They cannot keep financing this unpayable debt. Unless the debtors can get their creditors to take a massive haircut and write off these bad debts, or this whole House of Cards will fall down.

          • socalbeachdude

            Hollywood Studios are doing extremely well and the only one with significance losses is Japanese owned Sony which has an annual loss of around $1 billion due to bad production decisions. Most of the Hollywood studios have record high profits.

            China is not paying off any debts at all with its egregiously overprinted currency but rather RUNNING UP MASSIVE NEW CREDIT RESULTING IN HUGE DEBT and a great deal of that is now IMPLODING.

            Ignore China’s credit risks at your peril

            https://www.bloomberg.com/news/articles/2017-04-20/ignore-china-s-credit-risks-at-your-peril-says-top-bond-manager

            China has a MAJOR CRACKDOWN in progress against CAPITAL FLIGHT and outbound investments and is getting that huge problem SHUT DOWN.

            China finally halts outflows. Now what?

            https://www.bloomberg.com/view/articles/2017-04-10/china-finally-stems-capital-outflows-now-what

            China is not “dumping US dollars” at all but is RUNNING SHORT OF US DOLLARS which it needs for letters of credit for their huge trade in the world and more than 83% of all trade transactions in the world are done in US DOLLARS and that will be the case for the foreseeable future.

            Not a penny of the Federal Reserve’s QE funds went anywhere BUT INSIDE THE FEDERAL RESERVE WHERE THE ENTIRE $3.6 TRILLION IN QE FUNDS HAS ALWAYS REMAINED. Those funds were deposited in the primary and excess reserves accounts of the member banks in the US from which the Federal Reserve purchased existing securities consisting of US Treasuries and MBS instruments and more than $2.6 trillion remains inside the EXCESS RESERVES ACCOUNTS OF THOSE BANKS INSIDE THE FEDERAL RESERVE and there is more than $1.3 trillion in the primary reserves of those banks inside the Federal Reserve.

            Free trade has been of ENORMOUS BENEFIT to all of the world’s economies which have grown substantially in the free trade climate. Where they have all run into substantially problems is their FAILURE TO CONTROL DOMESTIC GOVERNMENT SPENDING AND THE CREATION OF CREDIT IN THEIR RESPECTIVE ECONOMIES which is why there is now more than $67 trillion of debt throughout the US economy alone.

  • Bill

    The dude who can’t stop his diarrhea of the mouth is allowed to post without interference of moderation but my comment of gratitude to the author still hasn’t been cleared. Seems like he’s a bit prejudicial to me.

    • crybaby

      Wahhhhhh. I want my mommy. Wahhhhh

      • Bill

        Hope you’re not one of the author’s pseudonyms.

        • natxlaw

          Wa Wa Wa
          Wa Wa Wa

    • GSOB

      Random search

  • socalbeachdude

    Two Arrogant Dolts Confront Each Other and Threaten World

    Trump warns ‘major, major’ conflict with North Korea is ‘absolutely’ possible: President says he hopes Kim Jong-un is ‘rational’ and would love to ‘solve things diplomatically but it’s very difficult’

    President Donald Trump said on Thursday a major conflict with North Korea is possible in the standoff over its nuclear and missile programs, but he would prefer a diplomatic outcome to the dispute. ‘There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,’ Trump said ahead of his 100th day in office on Saturday. Nonetheless, he said he wanted to peacefully resolve the crisis, a path that he and his administration are emphasizing by preparing a variety of new economic sanctions while not taking the military option off the table. ‘We’d love to solve things diplomatically but it’s very difficult,’ he said. Asked about whether Kim (pictured top-right) could be reasoned with, he responded: ‘I hope he’s rational.’

    http://www.dailymail.co.uk/news/article-4453998/Trump-says-major-major-conflict-N-Korea-possible-seeks-diplomacy.html

    • GSOB

      A show of hands.

  • GSOB

    John 20:30-31

  • Euclides de oliveira pinto net

    Aquilo devia ser rodado em Hollywood… é pura fantasia/conto de fadas…
    é um imenso cassino, onde os “grupos financeiros” investem trilhões de dólares de seus clientes… quando ocorre o “crack”, os investidores perdem até o dinheiro das aposentadorias… e não se pode reclamar para ninguém… e é sempre bom lembrar que o FED – FEDERAL RESERVE SYSTEMS é PRIVADO, não pertence ao governo dos USA… embora use a expressão “Federal Reserve”, levando a maioria distraída julgar que está “protegida” pelo Congresso e pelo presidente dos USA… coitados!!!
    Se soubessem quem manda de fato nos USA, já teriam incendiado o país há mais de 100 anos… por essas coisas já mataram 7 presidentes… e se não rezar na cartilha deles, vai prá vala !!!

  • Dan Wingert

    Wall Street is betting on war.

  • geoffandmarie418@aol.com

    A house of cards!!

  • Alleged Comment

    Bad news make the “stuck” market go higher. Thanks for the boost. This weak should be a BULL market.

  • Lorungee

    No wonder Netflix is losing tons of money. They must be losing tons of subscribers. I am one of them. After two years of disappointing content selections, (except for “The Walking Dead”, Netflix’s “B” (maybe even “C”) movie content is an insult to the subscriber’s intelligence.

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