It’s no f’ing wonder!” I yelled to no one in particular the other day when my researcher, Dave Okenquist, shared with me a chart he’d just come across!
“We’ve died and gone to heaven thanks to these guys! They’ve given us the greatest free gift in history!”
The dog tucked its tail between its legs and made a hasty retreat.
“Thank you so much you a-holes! Now we’re going to pay an even bigger price when the wheels come off this f’ing bus and everyone realizes we’re not in heaven after all!”
The chart proved that this rally since 2009 is built on a whole lot of nothing! There are no fundamentals behind it. All that’s happened is corporations have been buying back their own stocks with the near-free money the Fed and other central banks put on the table.
So, on this Thanksgiving Day, let’s give thanks to the Fed and those corporations for this unprecedented bubble!
They’ve gotten the biggest “free lunch” in history.
And now they’re eyeing Trump’s tax cuts like cannibals at a human meat market, despite their corporate profits having hit as high as 11% of GDP. Those profits have been just 6%, on average, since the 1950s!
“Oh, if these companies that have been buying back their own stocks with free money only got MORE free money,” I continued raving to no one, “then they’d expand their capacity and create new jobs!”
I was being sarcastic, of course!
We’re at 4.1% unemployment. That’s about as low as it gets.
We’ve hired back all of the lost jobs from the great recession. Our workforce will actually decline for several years ahead and then only grow, at best, at 0.2% for decades to come.
Our productivity has dropped from 3% in the past to 0.5% now; and it’s still falling… because we’re aging as a society.
How many old people do you know who get more productive and innovative as they age past 50 or 60?
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