Introduction. Who is D Stockman:
Former Economic Advisor to President R.Regan. Former Office of Management and
Budget Director at the White House. Previously
with Salomon Brothers, Inc
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BRACE
FOR THE MOTHER OF ALL BUBBLES By David Stockman (12/11/13)
Here the Review by futurefastforward.com. Tuesday, 12 November 2013 http://futurefastforward.com/financial-analysis.html
“How
could someone in their right mind believe that you can have interest rates that
drive the whole short end of the money market at zero for nine years?…That is
the greatest gift to the speculators, to the 1 percent, to the leveraged
traders, to the carry trade ever imagined; it will totally distort markets and
create unimaginable bubbles if you keep that up. We’re almost on the edge of
another explosion at the present time.”
“We’re
at the fourth bubble inflated by the Fed in this century…Now, I think, we have
the greatest, mother of all bubbles. There’s no one in the stock market today
except drugged up day-traders and robots…This is utterly irrational.”
David
Stockman is a former Republican congressman from Michigan and was President
Reagan’s budget director from 1981 to 1985. He is the author, most recently, of
The Great
Deformation: The Corruption of Capitalism in America.
See Video below with the interview to Stockman:
Go to the link - http://marketsanity.com/stockman-mother-of-all-bubbles/
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FED IS CREATING THE 'MOTHER OF ALL BUBBLES' Here the review by John Morgan
Friday, 08 Nov 2013
Americans should be bracing
[preparing] for the explosion of a "mother of all bubbles" brought
about by the Federal Reserve's gross and irresponsible manipulation of interest
rates, according to David Stockman, the colorful supply-side economist and
director of the Office of Management and Budget under President Reagan.
The central bank has created a false prosperity that shows up in an overpriced stock market, Stockman told Fox Business Network. VIDEO http://video.foxbusiness.com/v/2812214997001/stockman-brace-for-the-mother-of-all-bubbles/
The Fed's massive stimulus since 2008 is "the greatest gift to the 1 percent, to the speculators, to the leveraged traders, to the carry trade ever imagined," he said.
"Now we have the greatest mother of all bubbles. And there's nobody left in the stock market today except drugged-up day traders and robots who are being mainlined by the daily injections of liquidity from the Fed. This is utterly irrational."
The United States is at the mercy of the same crew of central bankers who brought the nation the dot-com crash and the housing bubble, according to Stockman — not exactly a track record of success. And, he added, long-time Fed banker Janet Yellen has been nominated to be the next Fed chair.
"It tells you the clear and present danger in America is that the Fed is run by people who are in some medieval castle somewhere, and they lost track of the real world."
Stockman said artificially low bond rates have forced stock prices skyward, and essentially "are part of the same bubble."
Meanwhile, he said investors are hearing the same perilous siren call from retail stock analysts that they heard at the 2007 peak before the U.S. financial meltdown: "Come on in, the water's warm, we're just getting started."
Veteran investor and financial author Jim Rogers, himself no stranger to hyperbole, told Reuters TV [ http://www.reuters.com/video/2013/11/07/reuters-tv-central-banks-are-making-a-terrible-mist?videoId=274443989&videoChannel=118110 ] that the Fed is only one of numerous central banks around the world that are all printing money in pursuit of economic growth.
"The world is floating around on a huge artificial sea of liquidity," Rogers declared. "It's going to dry up and when it dries up we're all going to pay the price for this madness."
Rogers predicted it could be 2015 before the Fed begins to reduce its huge monetary stimulus, but there will be no avoiding the harm to an inflated stock market when the tapering finally begins.
"These are not very smart people," he said of U.S. central bankers such as outgoing Fed chair Ben Bernanke and Yellen. "They are government bureaucrats and they think like government bureaucrats."
=============
HERE Paul Ebeling review of the
video above: Nov 8-13
THE
US FED IS CREATING THE MOTHER OF ALL BUBBLES
Americans should be preparing for
the explosion of a “Mother of all Bubbles” brought about by the US Fed and its
irresponsible manipulation of interest rates, says David Stockman, the
Supply-Side economist and director of the Office of Management and Budget (OMB)
under US President Ronald Reagan.
The US Fed has created a false
prosperity that shows up in the overpriced US stock market, Mr. Stockman said
in an interview Sunday.
The US Fed has pumped massive
liquidity into the economy since Y 2008 it is “the greatest gift to
speculators, to the leveraged traders, to the carry trade ever.” he said. This money
has for the most part not made it to “main street.” [ http://www.heffx.com/]
“Now we have the Mother’s Mother of all bubbles. And there is nobody left in the stock market today except manic day traders and robots who are being mainlined by the daily injections of liquidity from the Fed. This is utterly irrational,” Mr. Stockman.
“Now we have the Mother’s Mother of all bubbles. And there is nobody left in the stock market today except manic day traders and robots who are being mainlined by the daily injections of liquidity from the Fed. This is utterly irrational,” Mr. Stockman.
The United States is at the mercy of
the same group of central bankers who brought the nation the “dot-com” crash
and the housing bubble, according to Mr. Stockman, not a track record of
success.
Now long time US Fed banker Janet
Yellen has been nominated to be the next US Fed Chair, he added.
“It tells you the “Clear and Present
Danger” in America is that the US Fed is run by people who are in some medieval
castle somewhere, and they lost track of the real world.”
Mr. Stockman said US Fed
artificially low bond rates have forced stock prices skyward, and essentially
“are part of the same bubble.”
He said retail investors are hearing
the same perilous “Siren Call” from retail stock analysts that they heard
at the Y 2007 peak before the US financial meltdown: “Come on in, the water’s
fine, we are just getting started.”
Both Shayne Heffernan
and I have been voicing this same POV for the last several months, a
distribution market and not for mom and pop retail investors. A major
correction of 22 to 35% is coming, some analysts are saying up to 40%. [ http://www.shayneheffernan.com/#&panel1-1
]
Veteran investor and financial
author Jim Rogers, told Reuters TV that the US Fed is only one of several
central banks around the world that are all printing money in pursuit of
economic growth.
“The world is floating around on a
huge artificial sea of liquidity,” Mr. Rogers declared. “It’s going to dry up
and when it dries up we’re all going to pay the price for this madness.”
Mr. Rogers predicted it could be Y
2015 before the Fed begins to reduce its huge monetary stimulus, but there will
be no avoiding the harm to an inflated stock market when the paring begins.
“These are not very smart people,”
he said of US central bankers such as outgoing US Fed Chair Ben Bernanke and
Ms. Yellen. “They are government bureaucrats and they think like government
bureaucrats.”
===========
HERE ZERO HEDGE VERSION OF
STOCKMAN VIDEO
Submitted by Tyler Durden on
11/07/2013 http://www.zerohedge.com/news/2013-11-07/david-stockman-blasts-brace-explosion-mother-all-bubbles Comes with the VIDEO interview
David Stockman has never been shy of
expressing his true feelings (about Bernanke's
"Born Again Jobs Scam", Calamity
Janet Yellen, Obamacare's
resentment-encouraging rollout, and the entire
Keynesian state wreck ahead). But this time, he aims his acerbic ire at the
"markets."
During a brief interview on FOX
Business, the author of The Age of Deformation exclaimed "There’s no
one in the stock market today except drugged up day-traders and robots... This
is utterly irrational," adding that "we're in the fourth bubble
inflated by the Fed in this century... but now we have the greatest, mother of
all bubbles."
The blame (and benefactors) are
clear, he blasts, "how could someone in their right mind believe that
you can have interest rates... at zero for nine years?... That is the
greatest gift to the speculators, to the 1%, to the leveraged traders, to the
carry trade ever imagined!" He concludes, "we're almost on the
edge of another explosion at the present time."
In just over 3 minutes Stockman takes it all on..
===========
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