Author name: David Stockman

Economic Old Age, Part 4: The Mother Of All High Water Marks

Caterpillar’s management committed an unpardonable sin during the company’s Q1 conference call. It was in the nature of admitting that beanstalks do not grow to the sky. As it happened, CAT had posted another “blow-out” quarter by the lights of the head line reading algos. The instant this “beat” crossed the tape, CAT’s already hideously over-valued shares instantly jumped […]

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Economic Old Age, Part 3: Counting Inflation On The Head Of A Phillips Pin

Now that the US economy has reached the #2 spot in the annals of business cycle expansions at 106 months of age, the Keynesian economists on Wall Street are starting to gum about the second decimal point in the monthly inflation print. As one of the geniuses at Deutsche Bank, Torsten Slok, recently pontificated,  “Since the financial crisis core

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Economic Old Age, Part 2: Mickey D’s Awesome Goose Egg

The casino opened a bit jiggy yesterday (it didn’t last) on month-end window dressing and the alleged “blow-out” earnings of another Dow component. This time it was McDonald’s, which posted a sizzling “adjusted” earnings gain of 22%. Except there was absolutely nothing to all the ballyhoo. Sales actually decreased by 9% versus the year ago quarter, and save

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Economic Old Age And The Infections Of Monetary Central Planning, Part 1

This morning we heard one of the usual bubblevision suspects, a Keynesian street economist by the name of Ian Shepherdson, giving the all-clear signal to buy stocks. He claimed business cycles don’t die of old age, and implicitly, therefore, that the Fed has your back and will keep GDP and earnings chugging ever higher. And, besides, there

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Cycling Blindly In Chartland, But Look Out Below!

Wall Street’s beer-goggle induced complacency is not simply a matter of eager-beaver optimism or an excessively short-term focus on the meme of the day. It is exhibit #1, in fact, of the profound intellectual mendacity, sloth and downright corruption that has accompanied the Fed’s destructive regime of monetary central planning. Needless to say, the latter has thoroughly falsified financial

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Your Ain’t Seen Nothin’ Yet—More On The Donald’s MAGA Delusions And Others

MAGA is not the only thing the Donald is delusional about. For example, he thought the dip-buying robo-machines were heralding Trump-O-Nomics, when they were merely chasing chart points higher—until the moving averages turned negative. Likewise, he apparently believes that Xi Jinping is his friend and that America’s hideous $504 billion-to-$130 billion import/export imbalance with China can be remedied by the

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The Delusions of MAGA And The Return Of Honest Bond Yields, Part 4

In the wee hours this AM, the yield on the 10-year treasury note hit 2.993%. That’s close enough for gubermint work to say that the big 3.00% inflection point has now been tripped. And it means, in turn, that the end days of the Bubble Finance era have well and truly commenced. In a word, honest bond yields will knock the stuffings out of

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Sell The Rips—The Delusions of MAGA, Part 3

In Part 2 we noted that the key main street economic metrics reflect no MAGA magic whatsoever. Since the election, inflation-adjusted paychecks have gone nowhere and almost anything else you can name—-business investment, real retail sales, productivity, employment and even real GDP—-continue to slog along in the tepid “recovery” channel that has prevailed since 2010. Notwithstanding

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