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David Stockman Rages Market "Valuation Has Lost Any Anchor To The Real World"
The current malaise of news, data, and spin is "meaningless," David Stockman tells Bloomberg's Tom Keene, adding that markets are exhibiting "the kind of speculative froth you get at the top of a cycle where valuation loses any anchor in the real world; from earnings or the prospects of the economy." As he argued before, "owning stocks here is very dangerous," and despite Keene's best efforts to denigrate Stockman's "of course it's a bubble," perspective; the former inside-man exposes the hard mathematical truths of valuations, performance, and reality in this brief clip. Who is to blame - The Fed or Wall Street? "It is a question of who has taken whom hostage," Stockman concludes ominously, "it's a co-dependency... it's very dangerous."
"Wall street demands that the Fed keeps dishing out the liquidity, keeps dishing out the monetary heroin...
They have a hissy fit if the chairman of the Fed even suggested they might begin to taper four years into a recovery.
So - it's a codependency.
It's a very dangerous thing. "
Interview below:
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Market is a bubble according to both David Stockman and Christine Hughes (Otterwood Capital)
http://www.planbeconomics.com/2013/12/christine-hughes-stock-market-is-i...
But they will be long till the bottom falls out.
Convinced my much younger partner that 'speculative froth' is good for her, and she agrees. Swallowing any difference is just par for the (inter)course. We're all going to get screwed in the end, why bother splitting (pubic) hairs? ;)
co-dependency = feedback loop
those always end well...
Without fake money creation and political favors, there is no economy in this land of oz.
Who's that old dick interviewing David?
If he does not see the bubble then his dickhead got more smarts than his brain - if he has one.
On second thought - he's a perfect fit for Bloomberg.
He waxes his balls one hair at a time. He then stands them up and interviews them, dressed in a pink taffeta skirt, Barbie looking on. Old dusty hairs get put in a silver box and carefully stacked next to the My Little Poney. "I will cherish you for ever and ever and ever...."
keane or whomever-just sickening media that i will not watch-revolting.
by watching they gain credit for being worth more that a pile of shit.
self appointed by viewership rating-kind of like our currency. self fulfilling and you aint in the club.
trickle down is the best we get until enough figure it out...
"Market is a bubble according to both David Stockman and Christine Hughes (Otterwood Capital)"
Wow..., Christine Hughes seems quite bullish in that clip that you obviously didn't watch.
Yes, QE creates bubbles. I've known that since 2009. Why must I have it repeated to me over and over by credentialed establishmentarians?
P.S. No, there isn't and there will never be a recovery.
I just spit beer all over my monitor on reading this.
LoL!
Had to share this one fresh from my inbox:
http://www.dailymail.co.uk/news/article-2520753/Chinese-boyfriend-jumped-death-girlfriend-insisted-going-clothes-shop.html
She'd love to go to his funeral but she will be shopping that day...
And one of the comments was: "Shop till you drop."
Self-centered prick! He should have pushed Her over the balcony! Now the world is stuck with Her, totally unrestrained.
Or until the 10 yr inflation expectations measured by TIPS dips below its 200 day moving average. The Hendry Rule.
"speculative froth".....yummy
The stock market without QE would be like flat warm beer, no froth at all.
The word "froth" in this kind of situation is lame. A market is "frothy" when there's a bit too much optimisim about it, when prices are somewhat high. Then some selling comes in and the froth settles down.
This stock market is intensely manic, an out-of-control freight train heading for a sharp spike high. It's not "frothy".
In the shuffling madness
Of the locomotive breath,
Runs the all-time loser,
Headlong to his death.
He feels the piston scraping --
Steam breaking on his brow --
Old Charlie stole the handle and
The train won't stop going --
No way to slow down.
John Voight's Character gritting his bad teeth into the wind in "Run Away Train."
(if you've never watched it, do it now, before the power goes out)
Why do these bimbo taking heads think they can argue this stuff with Stockman? He knows his shit so much more than them, they end up looking foolish.
Keene can suck my ass. Hate that nerd.
At this point, I'm even starting to question anchors.
What?
The Titanic doesn't have an anchor?
Old Stockman tells it like it is; too bad the band on the deck is playing so loud.
"Codependency" = EXACTLY.
price it in bitcoin. what's the problem...
Its almost as if they're saying theres a codependancy between a crack dealer and a crackwhore...
TPTB sit and laugh at the idea of a codependancy
The end is nigh! The end is nigh! Repent! Repent!
Was Stockman hibernating for the last 4 years?
What goes up, must go down. Cyclical market principal. The implosion will double down once minimum wage increases and cost of goods rise by 1%. IMHO
"talk about your troubles but you never learn. . . ":
http://www.youtube.com/watch?v=kK62tfoCmuQ
Too funny. My mother would often play that song on the stereo turntable Thanks for the memory. All of her memories seems like it was just yesterday. Lost her 25+ years ago.
Well, I sincerely hope that it was good for you..... I have an old "auntie" with a great turn-table and a lot of $ that turned me on to Steely Dan and David Bowie and others, when I was quite young and i'll always love her for that.
Keene is a moron, but I hate the way the lady commentator asks a question and then tries to answer it. The stupid biotch has been given a line to burp up by WS. WS is afraid that the bill for their freebees is coming due and is trying to throw the FED under the bus.
Keene even tried to cut off Stockman when he saw that Stockman was not going to give WS a free ride.
As they own the camera, they believe themselves the star and so obviously Gods gift to all audiences. Its hard to imagine anyone who could sit before a camera repeatedly and not see themselves that way. It would be like sitting in front of a mirror admiring and talking to yourself, convinced you are "it".
Bioch, she looks like a scared Kathy Lee. Look at her hair. It doesn't move. Freak! And the woman, she's even worse.
The Group of Ten. See how simple that was? Sock puppets know, it's just not written to read off their teleprompter.
http://www.bis.org/list/g10publications/index.htm
Just the final stages of the death of a star.
http://www-astro.physics.ox.ac.uk/~podsi/SN_sketch5.pdf
Following an initial collapse having spent all of it fuel, our "economic star" experiences rapid expansion, mostly in hot gases before it "pops". All that will be left is a black hole. How fitting.
The FED and Wall Street - don't talk about them as if they're two separate entities in a co-dependent relationship. They're not - they're partners in a giant, coordinated, well planned fraud. They're not threatening each other, doing some kind of crazed co-dependent dance of death, they're methodically stripping the country and the people outside their club of all their fucking wealth. Dammit, this is what always pisses me off about Stockman.
+1 Coordinated, planned and methodical fleecing of the middle class. The greatest redistribution EVER.
It hardly ever happens by accident.
Codependency, by definition, means making the relationship more important to you than you are to yourself," It's a one-sided relationship. It means you're trying to make the relationship work with someone else who's not.
...which is precisely why it's a terrible description of the current situation. Codependent describes an alcoholic husband, and his wife who gets some sense of value from supporting him in his addiction, not two criminals robbing a liquor store together.
It takes a village, Al. Not a very big one, but it still takes a village. No man can loot the entire world single-handedly.
LOL
No Debt. Never underestimate the greed of Obama, if he can't to it , he will still take credit for it.
Greed the operative word -left unchecked can get amazingly stupid!
Masters... Convincing us of things like "Death Taxes," which merely ensures that their prodgeny carries it all forward.
You are correct sir. Dylan Radigan was espousing this until they boxed him up. The Great Extraction. If you could see the machine for what it is; a giant hand on an udder. We're the cow. When milk stops flowing, they have a barbeque. Burp.
Love Stockman, but, I bet the "Great Deformation" goes another 4 years. The FED is just getting warmed up.
It can go generations. There's unfathomable new paper and instruments to be conjured.
Half the peasantry are a dedicated voting army. The elite have never in the history of the world had it so good. The rest of the trades, small business, professionals are some how some way at some time in violation of a law, code, form, permit, regulation. It is only a matter of inspection. " Show me the man, and I will find the crime."
Those who have nothing, have the state. Those that have much, got theirs in the present rent seeking, crony capitalists environment. The rest cower.
The market is calling the Fed's bluff. Like Hugh Hendry ranting that he is going to buy everythng and anything.
If the Fed doesn't taper then all bets are off ... the Stalingrad and Poorski Index (great one Tyler) goes to the even more parabolic and we then know that we are Zimbabwe.
The Fed has no choice this time around if the choice is defined as "Taper or Vapor". Vapor it might well be, but then we get to a new meme regarding the US socio-economic condition.
Expect the next move to be a phony taper: minor action accompanied by much jawboning.
But when, this month? I say no way.
Poor Yellin. She's going to wonder why she took this job at some point.
Not Ben. He's headed for Grand Cayman...
So what? Who cares?
Are you short the market here? Or are you waiting till we shoot up another 5% after they announce no taper this month? Maybe you are waiting to sell them next year after we are up another 60% because yellen quadruppled QE?
Face it, this is what the first phases of hyperinflation looks like, there is no going back at this point, everyone knows this will end badly, everyone says it will end badly, but they are still buying stocks and why shouldn't they? You cannot short a printing press; in another two years when the dow is trading 17,000,000,000. will you still be holding your shorts waiting for the crash?
The FED has two options, let it crash now or try to postpone it long enough so that .gov has all the infastructure and manpower ready plus the elite have their fortresses stocked and ready for the great purge.
clearly they are going for the latter as it seems this will be the big one.
Sadly I agree with you, it is why bitcoin is going to the moon. I was just at the store buying groceries and everything just seems expensive. I brake down the costs for a meal and it is easy to spend 10 dollars on salad ingredients for just one fucking dinner! The pistachios I buy from costco are almost 20 dollars for a 3 pound bag that's more than 6 dollars a pound for fucking unshelled nuts. The cheapest fish, talpia, was farmed at 6 a pound. Thank god we have cheap grass fed beef around here or I don't know what I'd eat.
Yup. It's why this quote has been one of my favorites for quite some time now:
"The secret plan is that we're going to keep doing exactly what we've been doing, for as long as we can."
- Daniel Quinn, in, "What a Way To Go"
The System never came with brakes, let alone a reverse. Cliff dead ahead...
I suppose we need to define what is meant by ' real '.
That's easy!
Bitcoins!
Markets are connected to the real world by a very long bungee cord.
Our bearded Federal Reserve Santa Claus subsiding Wall Street will not be spoken when the parrots talk about the best equity returns in years. Contraction will be brutal once the exchange of buying inflationary shit goes dormant. Preparing for ObamaCare and April taxes will stall the economy.
2014 everyone who is working in US might just freak.
All the new 'taxes' will start biting and people will go hungy so they can have healthcare or pay their ACA tax.
100 million may see 2x to 3x premiums....and it will take a year for all those to go into effect starting Jan 1 2014.
Dropping spouses from health plans is the newest "bail-in" for corprate.
The next election should be hilarious.
i wouldn't be suprised if o was elected to a third term!
The Public Be Suckered
GOT US HERE
and it continues.
http://patrick.net/forum/?p=1230886
Leadershit uber alles.
I like how all of the big name investors have pulled all of their money out of the stock market. It's now in their best interest to crash it as fast as possible so they can buy in at the bottom and start the cycle again. The sooner people realize how overbought the market is, the sooner it can crash back to where it should be.
Yeah, but the problem is that of who the fuck is going to buy?
This is economies of scale in reverse. The only thing left is to con folks into believing that TWTR and FB have "real" value.
Hook these Brothers Up! Hookers for the Up Brothers!
I agree with the Stockmans, Fabers etc. of the world but sheesh I've been listening to this stuff for 4, going on 5 years now and it's getting a bit old. Yeah it's all gonna go up in flames but until that day comes it's just up up up, buy buy buy, more more more. Maybe we should all just curl up with some good books for a few years.
+1
I am Hugh Hendry.
Could be worse. You could be Canadian or Australian. Canada and Australia haven't had their housing bubble burst yet. At least in the US there's a bit of realization that things aren't adding up.
The name for that feeling is "capitulation."
No trade the volitility with leverage. Make sure to convert a good part out of the dollar into other more stable currencies in places more survivable
Wow what an uncomfortable moment for the robots on Bloomberg
When JPM et al owns shares in the Fed, there's such massive conflict of interest that anyone with scruples would see this whole establishment should be shut down as a complete farce.
It's utterly ridiculous.
It is complete madness and a total separation from what the original colonies endeavored.
Stockman is a dickhead, he's trying to value things in $. Of course valuation has no anchor in $. The $ is an imaginary unit of measure. It might as well be Shitcoin.
Suggest you read Stockman's book, The Great Deformation.
Required reading for ZHers.
Valuations are up 47% in two years. Earnings are up only 5%.
Well, if valuations were down 60% the two years before that while earnings were up 5%, is there a problem? When they're diddling the market, valuations go up and down radically while earnings are a function of what's going on in the real world. The gyrations aren't as bad, up or down.
And you can't "inject" liquidity. Traders create money by making trading promises. You can offer to back all promises (i.e. create certificates ... money ... if traders want them), but if traders don't want to make trading promises (i.e. they can't see a way to make a beneficial trade), it doesn't matter how loose the money is.
Governments, on the other hand, never keep their trading promises. They just roll over their defaults. So governments are willing to promise anything. If there's any "injecting" going on, its the backing of bogus government trading promises.
Like Pareto says, given the shape everybody else in the world is in, "Why Can't QE/Double QE Go On for Another 4 years?"
The Bond Market.
We're rapidly running out of consumers, that's why...
Stockman on the one side and and Hugh "Ride the Trend" Hendry on the other.
Who is right? Both.
The government and Federal Reserve ran out of anchors, but the 99cents store accross the street from the Fed was having a sale on balloons.... when life gives you balloons.... break out the coke and have a party.
http://www.investwithalex.com/wp-content/uploads/2013/09/cocaine-is-bad-you-guys.jpg
They can't handle the truth. That tart was almost blaming Stockman.
If Tom Keene has any credibility he would walk out now. Ain't gonna happen.
Who's the mad bitch? She probably sits on the old mans face every night for her job.