Summary: Corporate profits have rising to an amazingly large share of our national income, powering the stock market while GDP and household income lag far behind. This has played a large role in shaping the New America of the 21st C. What caused this rise? What might reverse it? See my column at Wolf Street …
Corporate profits are the market’s foundation, shaping a new America Read More »
Summary: Again the US stock market skates on the edge of an abyss, this time without the Fed holding a safety net. We’ve seen this combination of peaking economy and overvalued stocks; it never ends well. Too bad we don’t learn from history. But I suspect we’ll soon get another opportunity. The Fed is like …
The stock market gives us its 2 classic warnings. Will we listen? Read More »
Summary: There is an exception to Saturday’s post, which said that a stock market crash would have only minor economic effects on America. Just as an oil crash hurts oil producing regions, such as Texas, a stock market crash hurts areas that produce stock certificates. Printing this “paper” is the most profitable part of the …
Who will get hurt from the next stock market crash? Not just investors… Read More »
Summary: As so many of us expect, the US stock market might (might!) have begun the big rollover. If so, how might that affect the US economy? If you rely on the news, you’ll be surprised. Here’s a brief note; I’ll write more about this next week. The decline of stock prices in China and …
Summary: We’re in a time of great events. Like all such, it consists of breaks with the past combined with periods of deceptive calm. This is a transition between the post-WWII era and the as yet unknowable new regime that lies ahead. The stock market provides a mirror in which we can see these great …
When you look back on this day & remember the bubble… Read More »
