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!
