PhD Economists Oughtta Know Better…

Thursday, the Dow rose 79 points – or about 0.5%.

Nothing proved one way or the other.

We told you about our visit with President Reagan’s former budget advisor and Wall Street veteran David Stockman.

Unlike almost every other analyst or investor we know, David has been a true insider. He has seen how the system really works from within. He played critical roles at critical moments – in Washington and on Wall Street.

So he understands, maybe better than anyone, how the game is played… and how the deck is stacked to favor the insiders, the elite, the cronies, and the Deep State.

Meltdown

David was cheerful when we met him on Wednesday.

He makes “bubble finance” trades – shorting stocks that are overpriced, overhyped, and overdue a slide. [Bonner & Partners Investor Network subscribers can catch up with editor Chris Lowe’s interview with David here.]

Lately, he’s been making good money. And he’s looking forward to better times.

The cronies have gone about as far as they can, he said. He expects the markets to melt down and the credit bubble to burst – soon – marking the end of the Bubble Epoch.

We’re not so sure…The Deep State depends on bubble finance. It won’t give it up without a terrific fight. If the Bubble Epoch goes, it will be over the Deep State’s dead body.

Which is the way we’d like it. But it won’t be smooth, easy, or fast.

Negative rates? A ban on cash? Helicopter money? Direct intervention in the markets? Depression? Hyperinflation? Dow 36,000?

We’ll probably see it all before this is over.

And now… a Friday classic…

They Oughtta Know

Originally published January 9, 2003

Today, we take another look at “ought” – and hope to discover more of life’s secrets.

If “Ought” were a person, it would not be a bartender or a good-hearted whore.

Ought is not the kind of word you would want to hang out with on a Saturday night… or relax with at home – for it would always be reminding you to take out the trash or fix the garage door.

If it were a Latin noun, Ought would be feminine, but more like a wife than a mistress.

For Ought is judgmental… a nag, a scold.