This page has been archived and commenting is disabled.
David Stockman Blasts "It's 2007/8 All Over Again"
"Bubbles are breaking out everywhere," exclaims outspoken former-insider David Stockman in this brief FoxTV clip, warning that "its like 2007/2008 all over again." Of course, we have heard 'bubble' talk before but Stockman steps methodically from the broad market (exposing the incredible numbers behind the Russell 2000) to junk bonds (and the record-breaking issuance and risk ignorance) and Fannie Mae (as an example of the idiocy). Crucially, Stockman explains to Neilo Cavuto who tempers the bubble-talk with aggregate measures, "bubbles don't form at the heart of the Dow, they form on the speculative periphery of the economy and work their way in," - something that is very evident in today's market, "the market will have a huge hissy-fit if Yellen tapers... the Fed has taken itself hostage."
Stockman goes on to destroy the myth of a housing recovery "there are few 'real buyers' this is massive speculation only"
"This is the 4th bubble the Fed has created through easy money and printing press expansion."
"we need to get the Fed out of the market..."
"the market will have a huge hissy-fit if Yellen tapers..."
"the Fed has taken itself hostage"
"This is a destructive poisonous monetary medicine that is being put into the system that is distorting all kinds of economic mechanisms with malinvestments on a massive scale"
»
- 27683 reads
- Printer-friendly version
- Send to friend
- advertisements -
He missed off FUCK YOU BERNANKE at the end of it. So I'll say it for him. FUCK YOU BERNANKE. And in advance I will add FUCK YOU YELLEN.
David Stockman says:
Stockman is 100% correct. The Fed is intentionally blowing massive mega-bubbles everywhere.
Lot's of people calling the top.
See this chart
http://i43.tinypic.com/71mj5f.png
Oh but it can't be cause "everybody" is saying it's a top... So funny...
"the Fed has taken itself hostage"
Ah...it's Blazing Saddles all over again -- "He's CRAZY! He'll do it!"
http://2.bp.blogspot.com/-C_W_7gFrBB0/T8IoRMT03_I/AAAAAAAABpI/27Cr2TevYU...
I have heard more "this can go on for a long time" these past 2 weeks than I did in 1999 & 2007. Almost like people saying "hey its ok, jump in cause you have another 20%-30% upside before it REALLY is a bubble"
My question is then if its not a "top" or a "bubble" because everyone is saying it is...do you really think people are going to stop saying it if the markets go up another 10%, 20%, 30%??? Or are the cries going to get louder?
Jeremy Grantham saying it this week almost felt like a frustrated bear capitulating, IMO.
Bubbles are fragilke things, apt to pop when least expected.
Fucking shills will say anything at this point. Almost as if the networks get paid to perpetuate this crap. And why the fuck does Crammer still have a job?
Why the fuck is Crammer not in jail?
eliminate tax deductions for pension plan contributions, dividends taxed as capital gains (who the fuck got this through), and pomo
Sure, the government needs more money. Right.
"My question is then if its not a "top" or a "bubble" because everyone is saying it is...do you really think people are going to stop saying it if the markets go up another 10%, 20%, 30%???"
No. It will just be a more obvious bubble.
In 1999, most people did not know what a bubble was. Now they do. Best bubble indicator, alan greenspan. When he denies it is a bubble, it is a sure sign that it is.
What Stockman talking about? I just heard, "The Recovery is Robust.""Never a Better time then now." "Prices will only go up."
CNNBCC said so this morning.
The market will NOT collapse until Tyler Capitulates.
A "collapse" in my mind is when the Great Ponzi finally unravels. That will be a Great Depression event and the market will collapse on the order of 75% give or take 5% or so. But we are probably decades from that happening. A more realistic drop will be what I call a recession "correction" of about 20%. I could see the market grind lower in 2014 as 0zer0care kicks in. About a 10% drop in the first half of the year when the real sticker shock converts to wallet shock, and then another 10% drop at the end of 2014 when the reality of cancelled EMPLOYEE plans hit. Of course all of this could be easily reversed by the Fed announcing or even hinting at an EXPANSION of QE as the economy starts to go into recession as a result of 0zer0care. So we could just continue to grind along at this level or even a little higher all next year with more QE heroin.
So I think the 30%,40%, 50% drops that so many think might happen, have almost no chance of happening unless some massive unforseen trigger happens somewhere in the world, and I don't see anything on the horizon like that unless we somehow stumble deliberately into WWIII. And I don't see that happening because I don't think TPTB want WWIII at this point, so it won't happen. No, I think we will just continue this same slow slog forward. The US dollar will continue to lose value. Commodities (except PM) will rise unless demand drops due to another recession. The consumer will be squeezed between higher costs for essentials (HC, energy, food, housing) and stagnate or fallling wages. TPTB have the perfect Goldilocks System in place to melt the stock markets higher and PM lower to continue the wealth redistribution to the elites. No way they change anything to upset that plan, or allow anything else to upset that plan. It's a BTFATH or at best BTFD world for quite some time. After the 2014 elections, TPTB will tip their hand as to whether they will support the Red or Blue team in 2016, and that could be interesting as the chess pieces get moved around like 2008.
"its like 2007/2008 all over again."
Remember when people used to refer to a century-old calamity to describe the worst possible scenario? Now we are referring to catastrophes that happened... 5 years ago? People had the excuse of not having experienced the great depreciation and therefore didn't learn from it. What's the excuse this time around?
Same f**ing players.
Stockman always says the stock market is overvalued. Who cares anymore?
The ultimate result of shielding men from the effects of folly, is to fill the world with fools.
Vol. 3, Ch. IX, State-Tamperings with Money and Banks.
Herbert Spencer (27 April 1820 – 8 December 1903) was an English philosopher, prominent classical liberal political theorist, and sociological theorist of the Victorian era.
people can you hear me? love is everywhere
allman brothers
Big deal. I'm also 100% correct that F=ma. That does not make it newsworthy or praiseworthy, just because I know Newton's Laws.
The chiming in reminds me of "sheeple" from that other ZH article... Free-range sheeple, but still sheeple. /s
Ben Shalom is cowering under his desk......just a few more days!
No, I think that's one of his favorite hookers under there giving him one more go around while she picks his pockets for the last time.
Hey! At least I said "she" !
Janet or Nancy (Pelosi)... maybe both ???!!!
There's something unsettling about seeing the words "Fuck" and "Yellen" within spitting distance of one another.
yes in fact when you see yellen fuck goes into a parallel universe or something, sort of like neopolitano, cankles, pelosi, etc.
can you imagine a nightmare where you were in bed with all three doing the most degenerate things your mind can contrive. probably wake up and sever your penis.
Mr. Stockman will NOT be invited on CNBC
Stockman says:
Very true.
What's more, the Fed is intentionally replacing the natural free-market forces with its own twisted, manipulative policies: "This is a destructive poisonus monetray medicine that is being put into the system that is distorting all kinds of economic mechanisms with malinvestments on a massive scale"
I'm pretty sure the people running the German economy did the same thing after WWI. Didn't turn out so good for them. Of course the real villains there handed over patsies to take the blame so they could escape scott free to run the scams again.
No, they did not run the German economy the same way, nothing close to it. Germany was in shambles and was blamed for WW1. The country had to rebuild while paying war reparations, something of a monumental task. Socialism had taken hold of Russia and was spreading throughout Europe, most notably in England, whose unions were battling the government on a daily basis. Completely different picture than the one we are seeing now.
Today's "leaders" are dealing from a position of strength and perceived pseudo prosperity. Smoke, mirrors and greed. Watch them pile the shit up they want and head for the exits when they smell trouble OR use the police to keep order. In any regard, what we are experiencing is nothing akin to Germany after WW1.
Read "To End All Wars" for a counter viewpoint to what is generally seen of WW1
"...head for the exits..."
Our job is to make sure that all exits lead to a guillotine.
when this thing pops in 7 years it's gonna be epic.
About that 7 yrs fonz, from your mouth to Gods ears dude.
fonz, this isn't linear. When the "Affordable" Care Act fully hits the SS Fucking Dancing Monkeys Greed Barge the fun will really start. The candle is lit before the 2014 midterms.
Seven years from now it will be a mess.
Seven years fonz?! I have already convinced the Mrs. to suspend putting money in our 401's since '08, no fucking way she will want to for another seven. All I hear is "THE DOW IS SOARING, STAWKS ARE REALLY HIGH WE SHOULD BE BUYING, IT'S FREE MONEY"
I find Martin Armstrong's constant reference to 2015.75 to be more than a little interesting. He bases it on his proprietary Economic Confidence Model, but I find it lines up differently, with 2001.75 (9/11) and 2008.75 (TARP).
Very superstitious, nothin' more to say,
Very superstitious, the devil's on his way,
Thirteen month old baby, broke the lookin' glass,
Seven years of bad luck, good things in your past
So yeah, fonz is right - he just forgot to start his clock...
I think he's calling for a minor correction in US equities soon, but will fly into the stratosphere into mid 2015? If I read him right, gold looks set to possibly crater to the 900-1000 mark soon with January 2014being the possible reversal point. He's been incredibly accurate on the gold calls these past two years.
I'll take the under on that one.
Ghordius once told me that when you can't imagine something going o for any longer, it probably will continue for another seven years. so i start my seven year clock over every morning.
speaking of seven i'm in manhattan and it looks just like Detroit did in the movie Seven. every fourth person is insane,
The movie 'Seven' was based in New Orleans if I recall. But point taken about Manhattan.
i recall morgan freeman going into the main branch of the new york public library at night to do research.
The Bible understands our financial system better than the "experts":
Seven (7) year cycles of capital growth, and then debt forgiveness: the Sabbatical Year
50 year cycles of property acquisition, and then property redistribution: Jubilee
These natural cycles are nothing to fear. Nor can they be avoided.
Crystal Ball? or will it be 72 HOURS?
Stockman says:
Very true.
TPTB say: "What difference does it make?"... and let their sociopath designed system continue to redistribute wealth from the masses to the elites. The sociopaths have gamed the system so they always win. It really is "it works, until it doesn't", but that day of reckoning is probably decades in the future because the sheep are content within their cages with their toys and food generously given them whenever they bleat to their masters.
The fat cow said there are no bubbles. Therefore, there are bubbles. Just assume everything coming from a Fed douchebag/cunt is a lie.
but there cant be any bubbles in this market.
cramer said there r no bubbles, david tepper said yesterday there were no bubbles, all this is on record profits by these phenominal companies we have.
o and btw, btfd now, dow is down a whopping 15 pts as i type this, dont worry though, they will make sure its up at least 50-60 pts today.
there is no red allowed
It isn't 2007-2008. It is a whole new predatory animal. Never before have we had the Fed openly buy the market up nearly tick for tick.
This bubble is also completely global. Blowing bigger, surrounding the planet.
I read another story yesterday about how we aren't in a bubble becuase you can't see bubbles while they are being blown. You only know something is a bubble after it pops.
So if you were in a bubble while it was being blown, but didn't see the bubble, you weren't actually in a bubble. Is this tree falling in a forest logic?
agreed man, this is nothing like 07-08.
at least in 07-08, interest rates were not being manipulated day in and day out, the market was actually allowed to fall, there was not a fed speaker out there every day when the dow dropped 20 pts, etc.
these r like times never seen before, times that future generation kids will be reading in there history books when all is set and done.
when it ends, it will be worse than the great depression and the financial crisis of 07-08 combined
Boy that's gonna be really bad when it happens.
yep, any day now... lol
The only difference now is we are aware of the manipulations and aren't going to sit still when we're told what to do or "the entire world economy will fall into the shit bucket".
We are near the end of the spiral. Five years ago we were starting the process.
When future historians write the book on this era they will laugh at the idiotic "wealth effect" premise. "How could they be so stupid? That only affects a tiny portion of the population! I can't believe they thought that would work and they kept doing for YEARS after it was obvious it didn't."
No mention will be made that it was all a power grab or that there were thousands of people who saw through it right from the beginning and posted like mad on what were then called "internet blogs" decrying the policy.
But if it's a power grab then it's not idiocy and stupidity that's behind the establishment/status quo. It's evil and greed.
Stefan, why would grabbing power ever be idiocy or stupidity? It's animal instinct, survival of the fittest.
"agreed man, this is nothing like 07-08."
Indeed. The general sentiment in 07 was that this was all bigger than the Fed. The perception now is the Fed is becoming bigger than the crisis. It is reinforced every day by the propaganda that has it's origins in politics, finance and a general tendency toward self preservation on the part of those who fear what might happen if the Mighty FRB fails in it's grand experiment.
So, while folks await the harsh reinstatement of Natural Selection, a Fed reincarnate Golden Calf is as good a symbol as any to worship.
These days we hear; "Well, if you think this is bad, imagine what it would be like had the Fed not intervened." (Wow, aren't we lucky?) And "Hey, 'they've' held it together for five years, so far so good." (See...Five years is an eternity to a flimflam man.)
bubble ... it's just another way to transfer wealth from the bottom 99% to top 0.001% ...
What? No one is outraged at the loss of filibuster benefits? Hands off my filibuster you filthy dirty commies, taking away my liberty, John Kerry is coming for your guns.......coming,... for your gu...nnnss.....LOL
chief k here all of three weeks, and already your ass is showing
ouch
coming for our guns? perhaps he might even get our guns. probably not in the way you perceive
With the massive debt and massive unfunded liabilities in the US ($460,000 per person and rising at $27,000 per year), it is impossible to have growth without manipulated interest rates and manipulated markets These manipulations cause bubbles and the Fed is constantly creating bubbles - in the stock market, real estate, bonds, art by their neverending QE. These create the wealth effect to have the economy limp along without collapsing. When the Fed can no longer create bubbles, the economy collapses.
"... the Fed is constanttly creating bubbles - in the stock market, real estate, bonds, art by their neverending QE. These create the wealth effect to have the economy limp along without collapsing. When the Fed can no longer create bubbles, the economy collapses."
In other words, the wealth effect is destroying the economy.
Meanwhile .... the Free Shit Army is waiting in line for the midnight release of XBox One.
" The main thing that sold me was to be able to play a a game and watch TV on the same screen ."
http://www.usatoday.com/story/tech/gaming/2013/11/21/xbox-one-launch/3671181/
XBox One is manufactured in Ohio, correct? The wonderful retail people employed by the beautiful electronic stores are paid $35 / hour and benefits.
IF THAT WAS THE CASE THIS ECONOMY WOULD BE WORTH FIGHTING FOR!
Since we don't have that, the concept of a nation and its economy can go to shit. I don't give a care.
Fuck the elite, fuck Bernanke, fuck all the pricks who syphon off the top and leave the crumbs to the rest. Fuck the politicians who turn this country into an upside down Nirvana where bad is good and worse is better - for their purposes.
Happy fucking Thanksgiving. Give fucking Thanks alot and often and especially say thank you to the motherfuckers who will be stuffing themselves with the profits from their mega corporations on the backs of 99% of Americans.
Singapore-based Flextronics built 90% ....Foxconn 10%
http://www.ign.com/boards/threads/only-10-of-xbox-ones-are-being-assembled-by-foxconn-90-by-flextronics-mainly-brazil.453524781/
Shouldn't that be 99% of working Americans?
XBox isn't exactly free. It's pretty expensive actually. I don't know how the middle class can afford to buy that, but then I look at everything else they buy and ask the same question: $200 sporting event tickets, $80 to see a B-rate singer's concert, $85 for a dress shirt to wear to work, $200 for a pair of "premium" jeans. Sheesh.
growth, what's that ?
fiat falling from yellens sloppy cunt
floppy would have been a better word...
fiat, falling, floppy
f as in fucked.
It's all part of the one big bubble (OBB) blown in Treasury Bonds starting in the Reagan Years, and continually reblown by Greenspan, Bernanke and now Yellen. There will be no taper...only the threat of taper, to keep the great unwashed confident in the USD.
Nothing is allowed to be "bad for the market". SHI blows up some people and what happens to the stock?
(hint: it does not go down)
Housing bubble #2 built up pretty nicely. The hot area prices have way surpassed the 2007 bubble. A lot of hot money with the help of the reckless Federal Reserve has been pushed into the hot areas.
No, it's MUCH worse than 2007/08.
Cavuto is a fucking tool.
I just checked my 401K since 1/1/2011 is up 49% !!!!!.......
Still not nearly as good as the defined benefits of the public takers, who I'm expected to work longer than, take more risk than and of course pay for their pension while getting much less than.......but I have a few years to figure out how to not give them a penny of my money.
Better think hard, Smoke, or you will be bailed-in by your gubermint to pay those hardworking public servant pensions before you have a chance to bail out.
Months.
Your 401k will be bailed into solving the next 'unexpected' meltdown.
Its only fair for the good of the country.
Move it or lose it, and I'm not talking stock market losses.
"Bubbles are breaking out everywhere,"
The ultimate bubble. When it bursts, everything takes a bath.
THE TRIBE MORE DANGEROUS WITH BUBBLES
SPONGEBOB SQUAREPANTS MORE DANGEROUS WITH BUBBLES
It ain't breaking till the Fat lady sings.
Yellen's the fat lady and watch out for her singing when the Fed looses control.
The tell will be the 10y over 3%.
They only reason why talk about Tapering, like estimates of When Tapering will begin, especially hinting about it possibly coming soon, is only to give Strength to the USD <<< an important ingredient in the Hammering of Gold/Silver. The FED will never cease PRINTING as long as BRICet countries accept USD's.
Why would they ever stop...they just can't say that its going to continue as long as there are "Takers"...so Taper became a constantly used JAWBONE, often followed by other Jawbones...All part of the Script
They will outlaw buying toys on Christmas or turkey on Thanksgiving if it means more money to buy stocks. Stockman is missing an understanding of how crazy the Fed and the Treasury are. If the market started going down uncontrollably, they would do away with the market entirely, tell you what your stocks are worth everyday, and book big mark to fantasy accounting gains...which is actually pretty much what they do now. Do not have a lapse of imagination. You are dealing with irrational batshit crazy people. Just be glad there is no market for dead babies and human hearts. They would do anything for a nickel. One look at Diane Feinstein and you know there no boundries to the stupidity and madness.
I am looking for someone who takes bets on a collapse by date and who will pay out in gold and silver.
Anyone out there?
JP Morgan and Goldman Sachs need not apply.
If by collapse you mean it becomes obvious the world is walking away from the USD and all the fallout that entails, I think we made headway this week. China did a lot of stuff this week no one seems to be picking up on: Pricing oil and commodities Yuan, saying they don't want any more FOREX reserves, announcing the coming end to strictly setting the value of the USD in Yuan, announcing a plan to more financialize their economy. they already have the currency agreements and swaps in place that make them a reserve currency for trade. All that is left for them to do is hand the coyote an anchor.
Agreed. I don't know whether China is fed up or whether it is worried by the US drunken trajectory but that anchor has a MADE IN CHINA sticker on it.
I think that one of their worries is that a US meltdown will precipitate their own meltdown if they haven't taken the initiatives they are taking.
Soon as the Saudis accept yuan for oil, its a done deal.
just wondering what secret codicil is being hashed out in Geneva
within the Iran negotiations.Can't see the Iranians agreeing to only
selling oil in dollars but its the only game changer i see to stop
the USD losing GRC status at this point.
Couldn't agree more. If the US loses the petrodollar the music stops. Until then they can continue to steal and blow more bubbles indefinitely.
They've (iran) been selling oil for Yuan since last year.
http://www.bbc.co.uk/news/business-17988142
FUCK YOU MOTHER FUCKING PEICES OF FUCKING SHIT. GO FUCKING DIE ALL YOU BASTARDS!!
And today's Marketwatch main headline:
Dow 20,000 here we come: It’s different this timeAnd it's a serious commentary.
Re: And it's a serious commentary.
That's because it IS different this time: there's perpetual QE.
Another day, another pile of shit.
It's 10a CT - and all indexes are up.
POMO LOVE
Federal Reserve of the Banks, by the Banks and for the Banks.
The rest of the country and its citizens be damned. The main aim of the political class and the central bankers worldwide is to create one bubble after another for the zombie bankers to feed on. The majority of the population who actually work hard to earn their living by engaging in productive work have to pay the price by either loosing a majority of their earnings in the form of taxes, interest on loans or paying the bill for the bailouts.
www.marketoracle.co.uk/Article40231.html
Stockman is missing the central truth that the 85BB/ mo will NEVER stop. if anything, it will increase - progressively - at an increasing rate.
To pull the plug now and allow the system to fail would betray the massive criminal looting that took place between 2008 - (whenever they decide to pull the plug).
There would be Neurenburg style hearings and 30 years of riots and lawsuits. NOT going to happen. QE is barely getting started.
Indfeed, take down the 90% to save the 10%.
You have to think QE will double, triple from here to enable more theft. Yellen is like Krugman.
I love the fact that Sheba brand cat food is popping up on the banner ads on ZH now. Very timely. I wonder if they're also on the AARP website.
The money changers got hold of the printing presses. Run.
except that the NYSE will never crash in numerical terms ever again?
except that the NYSE will never crash in numerical terms ever again?
Yeah they're blowing bubbles everywhere except gold and silver, which is where the biggest bubble should be. The nightmare continues
For FCS, the "bubble" IS the game now. The smart-n-savvy people are getting rich off "the bubble", those who are "less fit" are being left behind.
In an survival of the fittest society like the US the dumbasses lose, and lose big. It's how the system was designed, Hell, it's what the semi-autistic Libertarians have claimed to have always wanted.
Well, ya got it. It's just didn't turn out the way you thought it would.
I am long and hard. Money printing never stops, so why take the short side ?
Money printing never stops, except for every single instance of it in the past, this time is no different.
Here is my analogy of the markets:
I am a horse handicapper so I'll give it to you in horse talk.
4- horse race Take all to win. The payoff in a 4 horse race will be under the 8.00 investment probably 90% of the time.
6 -Horse race Take all to win. The payoff in a 6 horse race will be under the 12.00 investment probably 92% of the time.
8-horse race Take all to win. The payoff in a 8 horse race will be under the 16.00 investment probably 94% of the time.
These guys are betting superfecta box All-All-All-All. Who cares what it costs it is your money. Now with a guaranteed winner and maybe a big payoff they will still never get their investment 100% back and they will only win their own money.(your money nicely laundered).But not before the House gets their cut usually 25%.Then the pool is dispersed to the winners. So you can always win but at the same time lose quickly or slowly but a guaranteed loss in your investment.
Cavutous Interruptus
These are not the bubbles you are looking for.........
"the Fed has taken itself hostage
Exactly as planned!
"We would really like to do the right thing, unfortunately our hands are tied...!"