Spot The Mal-Investment Boom

Tyler Durden's picture

It's hard to avoid the feeling that the world is over-supplied...


Spot the credit-based mal-investment boom


One of these things is a non-financialized index of real transaction costs in the real world... and the other is an index of assets that are heavily financialized...

It appears the artificially-inflated financialized 'boom' has busted...

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SickDollar's picture


knukles's picture

Gotta be some margin and additional collateral calls a comin'


Look up in the sky!  It's a bird, it's a plane, it's the elite's personal jets flying to their Paraguayan ranches

MarketAnarchist's picture

Everything becomes so obvious when your an Austrian.   Keynesians look at that chart and start asking "how much more credit needs to be created to boost demand"...  

Philo Beddoe's picture

...or how can we level or blow the fuck out of everything to create demand again. 

LawsofPhysics's picture

My answer to them is always "Demand for what exactly?  Be specific!"

Given global debt and cheap money levels it's hard for even these asshats to deny that the earth is already saturated (no more demand).

Keynesian economics has morphed into a "free lunch" club.

Sorry, that's not how things work in the real world, especially with 7+ billion people (and growing) all competing for a higher standard of living and all the real commodities and energy that make that possible.  Demand for real shit is there, demand for bullshit paper/digital promises?  not so much.

Thisson's picture

True but those 7 billion people have to have something of value to exchange for that real stuff, and many of them don't.

cornfritter's picture

love will keep us alive :-)  but really, competition still exists in crony capitalism, for the scraps under the table that is... so instead of paying that lady to hand craft your meatball sub, now lets get a machine to do it... so she can't pass the algebra test required to service the machine?  so get your nailgun and take her out then.. place your bets trader joe, i'm sure you passed algebra, barely

A Nanny Moose's picture

I would argue that Keynes' sole purpose was to offer up the perfect High Priest gibberish to ecourage the FSA, and enable the State.

XAU XAG's picture

If the BDI drops much more it will be so cheap to get one's gold back using ships!


Everyone will want thier gold back

Consuelo's picture

Nah...   Estancia De Cafayate...   Or at least that's what they were trying to sell me...   Did Doug and his team change flight plans to Uruguay...?  

SheepDog-One's picture

So if I'm getting this right, 'highly bullish' for S&P?

StackShinyStuff's picture

Yes - because it's DIFFERENT this time

Salah's picture

My candidate for the next "trigger mechanism" to set off a bust, right under their noses....

New York City commercial-residential real estate

What will also accompany this is the growing recognition that most of the Northeast USA will be frozen solid every winter, due to rapid cooling from another solar minimum, the first since the War of 1812.

Thisson's picture

That's a pretty tenuous theory.  Rents have been going up in NYC.  NYers are also used to cold, shitty, gray weather.  That's what JetBlue is for.

Dr. Engali's picture

I think I'll go have a bowel movement and digest this information later. Based on a quick glance I can only come to the conclusion that this is unambiguously bullish!

LawsofPhysics's picture

Remind me again, what isn't financialized now?  Seems to me that the bankers and financiers are the fucking problem.

chinoslims's picture

It has been like that for millenia.  It always happens when governments get off the gold standard, print too much money, fight too many wars, promise too much to the people, governments get too big or get too corrupt.

LawsofPhysics's picture

Bulshit, the historical record is showing about 50-100 year cycles of real growth/enlightenment and then social/moral decay.


Interesting times...

Good for us, more opportunity.  No risk no reward righ?  Personally I wouldn't want it any other way.

blindman's picture

speaking of risk ...
. and
being a natural broken clock contrarian,
the take away message
is obviously "buy stocks" so i must conclude it
is time to sell.

Boxed Merlot's picture

…the historical record is showing…


So, I’ve been logging a lot of time with Martyn Lloyd Jones’ 366 lessons from the book of Romans ( ) and he covers some interesting information regarding the philosophies of historical narratives around sermon 297, (which was, interestingly enough, originally delivered around 1965).  Ranging from the “repeating / rhyming” genre to the “no connection” punctiliar variety, his typically affable manner of presenting a reasonable balance for either’s subscription is tempered by the overall security in knowing the end has already been settled, thereby allowing for a “Christian” point of view to be one of peaceful acceptance.

Would that it were that easy.






A Nanny Moose's picture

The race to the bottom has never travelled in a straight line however the trendline seems quite clear? We won't pull out of this race to the bottom without a change in ethics, and an end to moral relativism.

yogibear's picture

Stock market average PEs of 50 will be normal soon enough.

Federal Reserve infinite debt and QE continues for years.

weburke's picture

amazon pe's for all ! 

Squid Viscous's picture

BDI will scream higher when everyone in China demands an Iphone 6

sun tzu's picture

Iphones are already made in china

Quinvarius's picture

One more bust to go...

Philo Beddoe's picture

Indeed, we are reaching the point where nobody will be shorting or selling.  Then it will get interesting. 

Beans's picture

Testing new account testing...

Dr. Engali's picture

You're not going to try and sell us something are you? If you start talking about your sister's best friend's lesbian lover making thousands sitting at home, I'm going to kick your ass.

Beans's picture

Haha No, no I will not.

Madcow's picture

there is simply no way of avoiding a 20-year period of bankrtuptcy, debt repudiation, contract abrogation, default, etc. etc. etc. 

so enough with the QE already. we might as well get it over with. 

all we're doing now is postponing radical surgery as the cancer spreads.

Tenshin Headache's picture

I think we may be past the point of surgical intervention. Now what?

explosivo's picture

It's not about helping you, it's about a relatively small number of douchebags holding onto power a little longer. 

mayhem_korner's picture



I thought the malinvestment boom is the S&P 500...

ZoroAustrian's picture

undoubtedly - love all the calling out of malinvestment in real goods and essential commodities while shit like SHAK, AMZN, GPRO, LNKD, TSLA, and hundreds more float ever higher on ever hotter air

Comte d'herblay's picture

CMG, PNRA, Potbelly, priceline, soon to be Fortune 100 companies.

TureMasing's picture

The Swedish central bank lowered the policy rate to negative -0.1% today and said it's far from any lower bound.

The reaction in commentary sections of major newspapers? "Finally, the CB stops ruining the Swedish economy!"

I can't help but wonder how future macroeconomy pundits will view the 2010's. Hardly with admiration...

LawsofPhysics's picture

Will a Swedish bank pay me to take out a billion dollar loan and start a branch office there?


Do tell...


Yes, apparently there really is "no cost" for capital anymore....

stupid fucks, all four of them...

drivenZ's picture

you mean oversupplied with ships? I totally agree. This article is complete and utter garbage. amateur hour on ZH. 

Beans's picture

Greetings to all the Zero Hedge posters,

This is my second post and, having joined up (after a belatedly extended acc verification process?), would like to say how much I enjoy the witty posts made by you guys, which is most times.

My reason for joining was so as to weigh in on the poll/debate regarding the accent of the foreign merc in the Ukraine which some posters had speculated might be South African. Well, as a Saffa of British extract I can tell you all quite confidently that he is neither S. African nor British. He absolutely has to be American (North East coast perhaps?) or maybe Canadian at a stretch.

Anyway, I look forward to interacting with you all from time to time. FYI, if you need to know, I am absolutely dead set against the "Zionist" agenda. Well, it's either appropriately described as a Zionist agenda or otherwise as a flavour of 'Anglo-Zionist' agenda, but with strong overtones of 'Zionist', and I shall be opposing it at every opportunity. There are people intent on pushing us all into destruction and I refuse to stand idly by while they do so.

For the rest, have a great day,


Buckaroo Banzai's picture

This was actually definitively determined-- he was a Brit mercenary. Somebody (not here at ZH) found the guy's Facebook page.

So much for being able to determine accents from a tiny sound clip! Everyone had differing opinions, but there was virtually 100% agreement that he was NOT British. LOL!

Beans's picture

Fuck me, well how about that. It honest to god is not any kind of Brit accent I have ever come across before. Seriously, Brits don't speak like that. He must have spent time in America or elsewhere and developed a mixed accent of sorts?

Can you point me to your source, please?


blindman's picture

you also, greetings.
warning, watch your ps&qs, and the entrapment
trolls, the hate mongers and paranoid obsessives.
know it is all recorded to be used against you
at a moments notice not of your choosing.
and here, one last word of advice. i received
it myself from a very wise and brilliant poster
some 5 years ago.
"these "people" are not your friends." do not
be fooled by the flickering lights.
of course, i am different, i am a real person
and if you too are a person i would be happy
and honored to be your friend. just don't
ask me for any money or favors too soon in the
anyway poems^tm

Beans's picture

Thank you kindly and will do.


Have a shitstorm breaking out at work so will not be able to interact for a bit, sorry.

Thisson's picture

You're a fucking retard.  If you know what "Zionism" is, then it has no application to anything that's going on in Central Banking.