Posted on 07/13/2014 9:32:09 AM PDT by Lorianne
There is nothing more predictable than the bevy of Wall Street economists who come charging out of the blocks early each year proclaiming that money printing by the Fed will finally work its magic, and that real GDP growth will hit “escape velocity”. But this year the markdowns have come fast and furious. After the disaster of Q1 and the limp data reported for Q2 to-date, the revised consensus outlook for 2014 at 1.7% is already below the tepid actual results of the last three years. So much for the year when “screaming” growth was certain to happen.
The graph below is all the proof that is needed to demonstrate that Wall Street has become a pure Fed enabled casino. If honest “price discovery” was actually functioning, the stock market would not be at nosebleed heights, capitalizing hockey sticks that never materialize. Instead, it would be discounting a badly impaired economy that is stuck in a sub-2% rebound—and one that is dangerously at risk owing to the third and greatest financial bubble the Fed has created during this century.
(Excerpt) Read more at davidstockmanscontracorner.com ...
Any ideas when this will happen?
No idea at all. It’s anyone’s guss.
Some people who have been pretty accurate in the past are saying October 2014 but I have my doubts that it will happen before the election.
our economy is one big Ponzi scheme. Should be much longer before it collapses. the Dreamers© will help it along faster
You don’t need to be an economist to figure out that printing money cannot help the economy at all. If there are 2 loaves of bread, and $10 are available to buy them, printing another $10 won’t increase the number of loaves of bread to buy. It will only inflate the price of the bread.
Unfortunately, so-called economists like Paul Krugman seem to be incapable of grasping the fact that money is only a proxy for the goods and services exchanging hands. It is those goods and services that actually drive the economy.
“..Any ideas when this will happen?”
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As improbable as it may sound, it may not happen. But, if it were to happen, my GUESS is it would not be until after the 2016 elections. The America-killer regime is totally politically driven to survive, so I would anticipate their propping-up of Wall Street to continue until then. Congress is proven useless in the saving and protecting of America so forget them unless the electorate has absorbed enough downside and destruction to wake them up. Beyond that, get out your crystal ball.
Yeah, I think it’s a 2015 event at soonest - probably not until September. But I also think it will be more of an acceleration of things that are already happening, so we won’t see many dramatic headlines. The MSM will hide it as long as they can - then blame it on Tea Party Nativists. :)
How much of an impact on the market would there be if conservatives got out of the market?
The “money” that is working is magic is e-scrip the Fed creates out of thin air to pump up the T-Bill sales and purchases of Mortgage Backed Securities to the tune of $85 billion per MONTH for at least 4.5-5 years of Obama’s tenure, and which was reduced to $75 billion per month a few months ago.
Budget surplus in Obama’s administration? Pure BS. What is happening is that the NYSE is being bribed to keep its spirits up and rip off the suckers that still invest there. GDP doesn’t support it. Full time employment doesn’t support it. The increases in those Americans on entitlements don’t support it. Nothing supports it but Federal Reserve promises, and you’ll likely never see the true audit of their books that doesn’t contain a bunch of crap about inflated mortgage packaged manure and supposed ‘purchased’ T-bill support for our National Debt.
It’s possible the leftist regime when it sees itself
losing power will pull down the pillars of our society,
preferring “scorched earth” to being the minority.
We have seen this preference from them when thwarted
in numerous instances, so it should not come as a surprise to any of us.
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