Stockman’s Corner

This Time Is Completely Different—But Not In A Good Way!

If you don’t think the stock market is a giant accident waiting to happen, just consider the two most crucial developments—-soaring stocks and soaring deficits— since November 7, 2016. First, on the lunacy side of the equation, the S&P 500 was up 35% at its 2873 peak on January 26, and now the dip-buyers, chart-readers and robo-machines are trying mightily to retest …

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Swan Song Of The Central Bankers, Part 5: The Flat Line Does Not Spell Recovery

The punk January industrial production (IP) report brought another reminder that the Fed has stimulated nothing at all on the output/employment prong of its dual mandate. Indeed, as they celebrate a purported “mission accomplished” full employment recovery and confidently prepare to plow forward with an epochal pivot to QT (quantitative tightening), our Keynesian central bankers have remained absolutely mum on this stunning fact: To wit, there has …

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Swan Song Of The Central Bankers, Part 4: The Folly Of 2.00% Inflation Targeting

The dirty secret of Keynesian central banking is that under current circumstances its interventions have almost no impact on its famous dual mandate—-stable prices and full employment on main street. That’s because goods and services inflation is a melded consequence of global central banking. The capital, trade, financial and exchange rate movements which result from the tug-and-haul of worldwide central …

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Swan Song Of The Central Bankers, Part 2: Yellen’s “My Girl”

If you wonder why things are going to get a lot worse before they get better—just consider the following tidbit from today’s political gleanings. It essentially cements the case that Washington is heading straight into a bond market conflagration that will wreak havoc on the Wall Street end of the Acela Corridor.

Swan Song Of The Central Bankers, Part 1: Last Week Wasn’t An Error

Last week’s twin 1,000 point plunges on the Dow were not errors. Instead, these close-coupled massacres, which wiped out $4 trillion of global market cap in two days, marked the beginning of a bear market that will be generational, not a temporary cyclical downleg. What hit the casino wasn’t an air pocket; it was a fundamental change of direction, signaling that the three …

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The Night Of Fiscal Infamy

We have crossed the fiscal Rubicon, and not merely because Congress passed a $400 billion budget-buster in the wee hours of the morning rather than abide a government shutdown beyond sunrise. And also not merely because the deficit is now locked in at $1.2 trillion or 6% of GDP during what would be the tail-end 10th year of the business expansion …

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Here Comes The Yield Shock—The Beltway Borrowers Are Going Berserk

You can say this for the swamp creatures: Their gall knows no limits. Apparently, the two government lifers running the US Senate—-Mitch McConnell and Chuck Schumer (hereafter “Mitchels & Chuckles”)—-have reached a deal to bust the already red-ink soaked budget by $400 billion over the next two years and by upwards of $3.5 trillion over a decade. Consequently, bond yields have …

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