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 is huge pent-up demand for CapEx, which is purportedly going to trigger a new leg of strong GDP growth.
That proposition is so ridiculous, of course, that we could dismiss it as typical Wall Street baloney, bilge, bosh and bunkum, and be done with it. After all, displayed below are the 28 previous business expansions since 1879, and they all assuredly died of something. And 10 of them occurred before the Fed opened for business in 1914.
So you can’t say that all which transpired before June 2009, when the current so-called recovery incepted, is pre-history; and that the US economy is now under the awesome tutelage of Keynesian minders at the Fed who have unlocked the secret of maintaining unbroken full-employment forever, world without end.