Speaking Of Wile E. Coyote Moments...

Last Thursday, speaking at the American Enterprise Institute, Bernanke echoed Bridgewater's biggest concern about the sugar high facing the US economy for the next 18 months, saying that the stimulative impact from Trump's $1+ trillion fiscal stimulus "makes the Fed's job more difficult all around" because it's happening at a time of very low unemployment; it also means that the more supercharged the economy gets thanks to the fiscal stimulus, the greater the fall will be when the hangover hits. 

“What you are getting is a stimulus at the very wrong moment,” Bernanke said Thursday during a policy discussion at the American Enterprise Institute, a Washington think tank. “The economy is already at full employment.”

Stealing further from the Bridgewater note, Bernanke said that while the stimulus "is going to hit the economy in a big way this year and next year and then in 2020 Wile E. Coyote is going to go off the cliff, and it's going to look down" just when the US economy collides head on with what Bridgewater called "an unsustainable set of conditions."

However, as Global Macro Monitor notes, it's not just the economy that faces its Wile E. Coyote moment.

Stunning valuation metric of the U.S. stock market.

We used the Fed’s Flow of Funds for all domestic sectors for corporate equities in the numerator.   It is the same numerator as Doug Short’s but includes the equity market value of the financial sector.    Yes, it may be a bit distorted due to buybacks.

We invite you to confirm the calculation.  Click here to download the data from Table L.223 for the equity data and Table F.2 for the GDP data.

Nonetheless, the Buffet Indicator is not exactly  flashing a “buy the market it is cheap” signal.

The sun came up today and “you wanna talk about tail risk?”  Come on, man!

Bernanke’s Wile E. Coyote moment is coming to the stock market.  The question is not if but when?  Our bet it will be certainly before Gentle Ben’s.

Rentals only, my long brothers and sisters.

Stay tuned,  Roadrunner.

Comments

ravolla Sun, 06/10/2018 - 17:54 Permalink

THIS is an important week here in the SPAMMER's BUNKHOUSE.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind.

This week we are celebrating SEVEN YEARS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.

SAD BUT TRUE!!  I have wasted my youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me
>>  "I made $7500 last week on the Internet sucking cock!": that's me. 
>>  Daily Westerner: that's me.

>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's my life: mopping the floor at the Porn Cinema at 2am, working the drive-thru window at SONIC, sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

Wadalt
Leakanthrophy
PrivetHedge
bobcatz
Jumanji1959
Annunaki
Powow

Mr Hankey
gzcekkyret

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, Adullam, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce

DuneCreature Roger Ramjet Sun, 06/10/2018 - 19:11 Permalink

If 'he' isn't an AI bot just used to annoy, burn time and energy and obfuscate the issue(s).

Bots can be very self-abusive and they don't require medication or potty breaks. (Although some of the AI programmers need to be restrained and punished for writing evil anti-social code.)

Easy enough to ignore once you realize what a AI bot looks like in the wild.

 

~~~~ *************************!!**************************~~~~

~(???)~~~))) .... Where Does Tyler (AI) Live? .... (((~~~(???)~

At the far end of the biggest fattest fiber-optic security breach pipeline on the planet Earth. ........ Over yonder.

Meet The New Boss - A Lot Different Than The Old Bosses

But with the exact same agenda zhey have had for centuries. .... You are the slave. (((Zhey))) are the bosses. .. Zhey own you, yours and anything creative you can dream up. ....

NOW zhey have a machine monster named Tyler (AI) that will steal, steer, smear, seal the deal for zhem (Zhey think.)

I call zhem common greedy assholes myself.

(((Zhey))) want it all.

All of it. .. The works. .. Zhey want title to everything!

Zhey are very, very, very persistent.

We must be persistent too.

How do we stop them?

Step one. ............ UNPLUG. ...... (Wes By Ginny style)

Live Hard, Bye, Bye! ... See You In The Junk Yard, Uncle AI Zionist-Tyler, ...There Must Be Some Salvage Value To All Of The That Copper And The Gold And Silver Contacts, Die Free

~ DC v10.01

In reply to by Roger Ramjet

MK ULTRA Alpha Pollygotacracker Sun, 06/10/2018 - 18:12 Permalink

Essentially in order to pull the nation out of a depression, the Trump administration and congress have primed the pump with excessive borrowing before trade agreements were in place to take back lost market share.

The one world government agenda and loss of US sovereignty. This International Communism goal played into a trading system biased against the US.

Germany's Merkel is a communist, trained in communism all of her life in East Germany. Before Merkel Germany and Europe had high unemployment. The new one world government communism allowed Europe to grow using the American open market while restricting US trade with non-monetary barriers, tariffs and state subsidies.

A return to the US restricting unfair trade competition will cause high unemployment in Europe. Many don't remember when the EU and Euro were created, the Europeans were saying it was to challenge the US  and many Europeans leaders hated the US and this was their challenge.

In Europe the schools have been taken over by the communist. The entire Europeans continent is a communist super state, a bloc, a trade and political bloc against the US. I don't know how authors on ZH keep saying Europe is a vassal of the US when we have every kind of damage coming from Europe. Bilderberg Group, trade imbalance and no real requirement for defense spending when the communist controlled Americans, the beast of burden does it for free.

So free defense, trade surplus, the problem with socialism unemployment solved by the Americans, no wonder Merkel is in the presidents face when he ask for a fair deal for the US.

It's all a one way street and Trump and the US need to be tough on all of this one way street destruction at our expense.

In reply to by Pollygotacracker

He-He That Tickles Sun, 06/10/2018 - 18:02 Permalink

“Playing in the club like this all night
Bitches put your ass out let me hold it tight
You looking at my wrist saying "its so nice"
The price bitch is diamonds shining disco light
You better help me solve this problem
Or I'm gonna get this money and rob them” 

Wave-Tech Sun, 06/10/2018 - 19:17 Permalink

Bernanke is a quintessential inept academic "fag" that could neither fight nor argue his way out of a forced inmate blowjob...  Wishing you the very best, Ben!   

MrNoItAll Sun, 06/10/2018 - 21:31 Permalink

2020 is when EIA and Saudi Oil Minister say that oil shortages will hit. This is IT boys. TPTB are indirectly broadcasting to the world when it all goes down. 2020. If we make it that far.