{"id":350787,"date":"2018-03-04T16:02:00","date_gmt":"2018-03-04T15:02:00","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/stock-market-trouble-lewrockwell\/"},"modified":"2018-03-04T16:02:00","modified_gmt":"2018-03-04T15:02:00","slug":"stock-market-trouble-lewrockwell","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/stock-market-trouble-lewrockwell\/","title":{"rendered":"Stock Market Trouble &#8211; LewRockwell"},"content":{"rendered":"<div>\n\t\t\t\t\t\t\t                            \t<!-- S3 Cache --><!-- S3:S3:Non-Original -->\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<p>The Donald seems to think that the<em><strong>\u00a037%<\/strong><\/em>\u00a0gain in the stock market between election day and the\u00a0January 26th high was\u00a0all about him, and in one sense that\u2019s true.<\/p>\n<p>Donald\u00a0Trump is all about delusional and so are the casino punters.\u00a0They keep\u00a0buying what the robo-machines are buying, which, in turn, persist in\u00a0feasting on\u00a0the dip because it\u2019s there and because\u00a0it\u2019s worked like a charm\u00a0for nine years running.<\/p>\n<p>So doing, the punters have become downright reckless. After all, the market was already sky high last January\u2014-trading\u00a0at\u00a0<em><strong>23X<\/strong>\u00a0<\/em>earnings on the S&amp;P 500 and resting precariously on a record\u00a0<em><strong>$554 billion<\/strong>\u00a0<\/em>of margin debt\u00a0.\u00a0Yet in order to load up on even more of these ultra risky shares, punters have since\u00a0added\u00a0<em><strong>$112 billion\u00a0<\/strong><\/em>to their already\u00a0staggering<em><strong>\u00a0<\/strong><\/em>margin accounts, thereby helping\u00a0to propel the S&amp;P\u00a0index to\u00a0a truly ludicrous\u00a0<em><strong>27X<\/strong>\u00a0<\/em>by the end of January 2o18.<\/p>\n<p>And therein lies the true danger of the Fed\u2019s 30-year long regime of Bubble Finance and the\u00a0<em><strong>$67 trillion<\/strong>\u00a0<\/em>of debt it has piled upon the US economy. To wit, it has completely\u00a0unmoored Wall Street from the main street economy, meaning that the speculative momentum and internals of the casino are operating in free flight: They\u00a0will just keep levitating financial asset prices higher\u00a0until some powerful shock triggers another meltdown of the type experienced during 2008, 2000 and 1987.<\/p>\n<p>We happen to believe strongly that a bond market \u201cyield shock\u201d will be the crash-trigger this time around and for a self-evident reason. The central banks of the world have unleashed a credit monster\u2014-<em><strong>$67 trillion<\/strong><\/em>\u00a0in the US,\u00a0<em><strong>$40 trillion<\/strong>\u00a0<\/em>or more in China and\u00a0<em><strong>$230 trillion<\/strong>\u00a0<\/em>on a global basis\u2014and know they must finally\u00a0stop the relentless monetization of&#8230;<\/p>\n<\/div>\n<p><a href=\"https:\/\/www.lewrockwell.com\/2018\/03\/david-stockman\/the-albatross-of-debt-the-stock-markets-67-trillion-nightmare-part-4\/\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Donald seems to think that the\u00a037%\u00a0gain in the stock market between election day and the\u00a0January 26th high was\u00a0all about him, and in one sense that\u2019s true. Donald\u00a0Trump is all about delusional and so are the casino punters.\u00a0They keep\u00a0buying what the robo-machines are buying, which, in turn, persist in\u00a0feasting on\u00a0the dip because it\u2019s there and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-350787","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/350787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=350787"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/350787\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=350787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=350787"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=350787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}