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David Stockman To CNBC: ‘That Was Just Janet Yellen In Trousers And A Tie’

"The Donald seems to think that the 37% gain in the stock market between election day and the January 26th high was all about him, and in one sense that's true. Donald Trump is all about delusional and so are the casino punters."

  By David Stockman as originally published on Contra Corner and reprinted here with permission The Donald seems to think that the 37% gain in the stock market between election day and the January 26th high was all about him, and in one sense that's true. Donald Trump is all about delusional and so are the casino punters. They keep buying what the robo-machines are buying, which, in turn, persist in feasting on the dip because it's there and because it's worked like a charm for nine years running. So doing, the punters have become downright reckless. After all, the market was already sky high last January----trading at 23X earnings on the S&P 500 and resting precariously on a record $554 billion of margin debt . Yet in order to load up on even more of these ultra risky shares, punters have since added $112 billion to their already staggering margin accounts, thereby helping to propel the S&P index to a truly ludicrous 27X by the end of January 2o18. And therein lies the true danger of the Fed's 30-year long regime of Bubble Finance and the $67 trillion of debt
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2 comments on “David Stockman To CNBC: ‘That Was Just Janet Yellen In Trousers And A Tie’

  1. Bas says:

    Ok, so I thought the Fed was just going to let the bonds roll – ie lower demand. But Stockman is saying they’re gonna be they’re gonna be dumped – ie higher supply. Can someone with knowledge clear this up?

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