Bubble Bubba Isn’t Doing Fine Anymore

Let’s take a look at how the average consumer is doing. I’ll call this typical consumer “Bubba” because I just read an article that claimed “Bubba’s doing better today than at any time since before the Korean War.” It disgusted me because I found it to be such a disingenuous set of lies wrapped in half-truths, all contrived to pacify the trickle-down peasants as that philosophy continues to short-change the middle class with its fake promise.

First of all, who cares about how Bubba was doing before the Korean War? That’s going back an awful long time to find a day the present could beat. It’s before my days, and I’m a grampa now. If you have to look back that far to find a time when Bubba wasn’t doing as “well” as he is today, you’re chasing a false narrative because working-class Bubba wasn’t even alive back then. Those pre-Korean-war Bubbas retired long ago, and frankly they are much better off today in retirement than today’s working Bubba.

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7 Reasons the Bear Market Has Just Begun

By Michael Pento – Re-Blogged From http://www.PentoPort.com

On March 10th 2009 the US stock market hit an intraday low and put in the now-famous “Haines bottom”–coined after my friend, the late great Mark Haines, who made one of the most prescient calls in market history. It should be noted by the time that fateful day arrived it was virtually impossible to find a single bull out of all the geniuses on Wall Street.

Since then the major indexes have more than doubled. Therefore, today the narrow-minded canyons of Wall Street are littered almost entirely of trend following bulls and cheerleaders that don’t realize how little there is to actually cheer about. Stocks values are far less attractive than they were on that day back in 2009 and this selloff has a lot longer to run. There are hordes of perma-bulls calling for a “V” shaped recovery in stocks, even after multiple years of nary a down tick. But the following are seven reasons why I believe the bear market in the major averages has only just begun:

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The Economy Is In Liquidation Mode

If you’re an American over a certain age, you remember roller skating rinks (I have no idea if it caught on in other countries). This industry boomed in the 1970’s disco era. However, by the mid 1980’s, the fad was fading. Imagine running a rink company at the end of the craze. You know it is not going to survive for long. How do you operate your business?

You milk it.

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The Business Cycle & Government

cropped-bob-shapiro.jpg   By Bob Shapiro

Sometimes, people make stupid choices.

Wait! Let me be more kind. Sometimes, people make choices which don’t work out as well as they had hoped.

You may have a passion for reproductions of historic horse and buggy rigs, and you decide to invest your life savings to open a plant to produce buggy whips. My expectation (I certainly can be mistaken myself) is that your venture won’t meet your profit hopes.

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Measuring the Economy

cropped-bob-shapiro.jpg   By Bob Shapiro

Suppose there are three islands, each isolated from the outside world.

On one, each resident grows and makes everything that’s needed or desired all by himself. There is no trade and yet much is produced and consumed.

On the second island, people produce not only for their own use but also to trade with others on the island. Some are better at making some goods, so they concentrate their efforts on those items, and trade

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