This article this morning on Marketwatch includes an interview with Tony James of the Blackstone private equity group. In it, he mentions some consequences which may soon occur if Joe Biden is elected president just weeks from now.
It's hard to believe that this is news that would lead stocks to rally to a fresh new all-time record high, but it has. The Wall St Journal today has an article with the below headline:
The Wall St Journal says that, "U.S. government debt is on track to exceed the size of the
economy for the 12 months ended Sept. 30, a milestone not hit since
World War II." The US is taking on a staggering amount of debt this year, and the total is more than the entire amount of GDP for the year! This is a calamity in the making!
In an article on Marketwatch today, Mohamed El-Erian, Allianz’s chief economic adviser, explains that “...the seemingly endless rally… gives the impression that prices are endorsed and supported by the entire professional investment community.... After all, "he continues, "despite the vocal concerns over valuations having split away from underlying corporate and economic fundamentals, few fund managers have been willing to challenge the market by placing outright shorts. “
Financial analyst Daniel Lacalle today shares the following insight:
"One of the most alarming facts about this crisis is the pace at which bankruptcies are rising. Despite an $11 trillion liquidity injection and government aid in 2020, stocks and bonds at all-time highs and sovereign as well as corporate yields at all-time lows, companies are going bust at the fastest pace since the Great Depression. Why? Because a solvency crisis cannot be disguised by liquidity."
An article today on The Atlantic website asked an important and valid question. Are we reaching a "dire turning point" that could send the economy into collapse?
The Wall Street Journal today has an article the suggests that the stock market is "disconnected" from reality. Despite this, the Dow is up 200 points and the S&P500 index is at a new all-time record high! This bubble just gets bigger and bigger.
This headline on CNBC today seems to summarize well the risk! Ironically, stocks have been modestly HIGHER all day despite this news!
First time claims for state unemployment benefits rose above 1 million again, a sign to some economists that the economy’s rebound could be decelerating.
Jim Cramer told us today on Marketwatch not to be fooled by new market highs! He warns us that despite a new high for the S&P 500 index, the economy really isn't as strong as that new high would imply. "‘The S&P’s new highs are a tale told by an idiot, full of sound and fury, signifying nothing about the hardship of millions of people on food stamps, or the millions about to be fired from service jobs, or the homeless, or the people who are just huddled at home waiting for the vaccine..." he says.
“Never before have I seen a market so highly valued in the face of overwhelming uncertainty,” says James Montier on Marketwatch today.
An article on Marketwatch today suggests that Washington must ramp up still more stimulus spending, or... the economy and the stock market will "collapse":
It's a good thing stocks are rising, or I would have thought the economy was collapsing!
I guess that riots are a good way to get the market to go up! This headline today from Marketwatch;
I was shocked to see this headline just minutes ago!
This article on Marketwatch today suggests that the economic rebound will not be a v-shaped recovery, but don't tell that to stock market traders today. After being down 200 points, the Dow has gone positive for the day.
Zero Hedge today has an interesting article that is frightening, even as it is record-setting. Here is the headline:
These two headlines from the business news website Cheddar this morning express the sentiment that these are troubling times despite that markets are dismissive of risk.
