This article above was interesting to me more for what it didn't say than what it said. Those in the financial industry are CLUELESS about the state of the real economy. CLUELESS. Sure they throw around high level statistics on growth rates and productivity, but they are massively ignorant to the fact that the real economy has been systematically sold off for stock buybacks and special dividends. Qualitatively, there is no means to compare today's economy to anything from the past 30 years. Since 2008, the U.S. has become a Third World nation whereby supply and demand has been replaced by supply and debt. It's the same across the entire developed world. Adjusted for debt levels, this is the first non-recovery in global history. Apparently 0% for eight years and trillions in printed money to artificially levitate asset values wasn't adequate testament to the historically garbage quality of this "recovery".
GDP growth - deficit (% of GDP):
In other words, comparing overvaluations today to overvaluations circa 2007 and Y2K are the LEAST of concerns. It's a Potemkin Village built upon a house of cards. The Financial industry is oblivious to the fact that every day since 2008, corporate line managers have been told to cut costs by every means possible. This has not been a recovery based upon growth, it's been a recovery based upon demand displacement to boost profit. Belief in the magic of Free Trade is as resolute as ever on Wall Street even among those who decry asinine valuations. They never scratch the surface to determine the quality and sustainability of long-term demand, because they don't want to know. They assume that when the bubble pops, the economy will merely recover as usual. Little do they know, that the bubble IS the economy. Without ongoing debt accumulation there will be no demand.
U.S. stocks divided by U.S. total debt
"No one knows when this bubble will pop"
Which bubble? The fake economic reflation bubble is already popping in real-time as evidenced by bond yields, carry trades, deflation, and assiduously ignored economic data. That's the house of cards level. The Potemkin Village financial bubble overlaying the house of cards is now dependent upon Chinese internet stocks and Bitcoin, the latter of which is already imploding as I write. In other words, we're all 'smart', but no one knows anything.
What happens when Bitcoin goes to zero? At which point margined out hedge funds have to liquidate their other stock holdings?
ZH: Bitcoin Is Most Crowded Trade On Wall Street
This chart shows the relative one year performance of Bitcoin versus Neflix, Nvidia, Chinese Internet and Tesla. Bitcoin is the red line:
The IPO ETF holds the most recent top performing IPOs:
A break below $4,000 and Wall Street's favourite ponzi scheme is going to get panic sold:
The entire globalized Ponzi model hangs on a ponzi currency.
How appropriate
