The Great Disruptor’s Greatest Moment
We each have a special something we can get only at a special time of our life. Like a small flame. A careful, fortunate few cherish that flame, nurture it, hold it as a torch to light their way. But once that flame goes out, it’s gone forever.
– Haruki Murakami, Sputnik Sweetheart(1999)
Maybe you’re all in for MAGA.
Perhaps authoritarianism, central planning, and debt-slavery are your thing.
But if you’re buying stocks right now, you must truly believe our betters in Imperial Washington have perfected the proverbial free lunch.
And you must have true faith the Federal Reserve can print our way to prosperity… forever.
That’s all there is left to support the Everything Bubble.
The financialization of our economy that began with Alan Greenspan opened a gap between values on Wall Street and performance on Main Street.
It’s been going on for nearly 30 years. And each Fed-driven boom-and-bust cycle has left the connection ever more tenuous.
Here’s what I mean…
[Click to Enlarge]
“Household assets” are represented by the purple line in the chart above. They’ve grown by the staggering sum of $102 trillion since “The Maestro” discovered his printing press in basement of the Eccles Building.
It was the fall of 1987, in the aftermath of Black Monday, when the Dow Jones Industrial Average fell the equivalent of 6,000 points in one day…
Now, consider that nominal gross domestic product – that’s the red line – has grown by only $15.Read More
