{"id":14766,"date":"2015-11-25T07:37:06","date_gmt":"2015-11-25T12:37:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14766"},"modified":"2015-11-25T07:37:34","modified_gmt":"2015-11-25T12:37:34","slug":"wall-street-remains-clueless-even-as-the-brown-stuff-heads-straight-into-the-fan","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14766","title":{"rendered":"Wall Street Remains Clueless\u2014\u2013Even As The Brown Stuff Heads Straight Into The Fan"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/wall-street-remains-clueless-even-as-the-brown-stuff-heads-straight-into-the-fan\/\" target=\"_blank\">Wall Street Remains Clueless\u2014\u2013Even As The Brown Stuff Heads Straight Into The Fan<\/a><\/h3>\n<p class=\"entry-meta\">The Dow should have been down 500 points Tuesday. And that\u2019s to say nothing of the fact that the market\u2019s\u00a0current lofty\u00a0valuation\u00a0makes no sense\u00a0in the first place.<\/p>\n<\/header>\n<div class=\"entry-content\">\n<div class=\"pf-content\">\n<p>The fact is, the brown stuff is now\u00a0heading straight for the fan.<\/p>\n<p>Didn\u2019t the\u00a0odds of a major geo-political calamity\u00a0just take\u00a0a huge turn for the worse\u00a0in the airspace over the Syria-Turkey border?<\/p>\n<p>At the same time,\u00a0wasn\u2019t today\u2019s GDP update just one more reminder that the global economy is sinking into a deflationary contraction?\u00a0And that\u00a0our so-called domestic recovery cycle is getting very long in the\u00a0tooth and is essentially\u00a0running on the fumes of inventory accumulation?<\/p>\n<p>Yet the Wall Street gamblers and robo-traders seem to think that pricing this global accident waiting to happen at 22X reported S&amp;P 500 earnings is no big deal. And that comes on top of the fact that the long-running\u00a0corporate earnings expansion cycle is over, as attested to\u00a0by both the GDP report and the Q3 SEC\u00a0filings.<\/p>\n<p><strong>At $94 per share S&amp;P reported\u00a0earnings came in 11% below last year\u2019s $106 per share and that was before the most recent headwinds became evident.<\/strong><\/p>\n<p>To wit,\u00a0Syria is rapidly taking on the complexion of the Balkans in June 1914. The resulting\u00a0backwash of Islamic State terrorism and millions of refugees streaming\u00a0deep into the interior of Europe threatens to elicit a\u00a0political and economic\u00a0lockdown and a potential Thermidorian Reaction.<\/p>\n<p>The rise of rightwing nationalism, in fact, would\u00a0end the European Union as we know it.<\/p>\n<p>And this is occurring\u00a0even as Asian\u00a0exports to Europe plunge, dragging Japan into its 5th recession in seven years and China ever closer to a thumping hard landing.<\/p>\n<p>So the market at 22X amounts to a bubble floating toward a pin.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street Remains Clueless\u2014\u2013Even As The Brown Stuff Heads Straight Into The Fan The Dow should have been down 500 points Tuesday. And that\u2019s to say nothing of the fact that the market\u2019s\u00a0current lofty\u00a0valuation\u00a0makes no sense\u00a0in the first place. The fact is, the brown stuff is now\u00a0heading straight for the fan. Didn\u2019t the\u00a0odds of a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5979,2120,216,353,366,690,694,776,818,860],"class_list":["post-14766","post","type-post","status-publish","format-standard","hentry","category-economics","tag-contracorner","tag-david-stockman","tag-dow","tag-gdp","tag-global-economy","tag-risk","tag-russia","tag-syria","tag-turkey","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14766"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14766\/revisions"}],"predecessor-version":[{"id":14768,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14766\/revisions\/14768"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}