Posts
Click to enlarge.
Welcome to the freak show! That's two exponential trend failures for the price of one! I'm practically giving them away! Are you prepared to make some serious risk free money? You, sir! Behind the lady with the beard! And you, madam! Next to the circus clown! What's it going to take to get you into the stock market today?
The following chart shows government social benefits to persons divided by corporate dividends.
Click to enlarge.
It was nip and tuck there for awhile, but I think we've finally permanently removed ourselves from the long-term exponential trend channel! We're out! We're back in! We're out again! Fortunately, complete failure was an option! And as seen in the first chart, we have the real corporate dividend bubble popping yet again to thank. Isn't that fantastic? Of course, an honorable mention also goes to this "strong" and "sustainable" recovery that will drive long-term interest rates ever higher!
If you are like me, then you are probably asking yourselves a few questions right now.
1. Has the Government Transfer Company gone public yet?
2. If not, is there an Initial Public Offering I could get into?
3. As a taxpayer, how much am I allowed to invest?
The future's too bright! My eyes! My eyes!
Source Data:
St. Louis Fed: Custom Chart #1
St. Louis Fed: Custom Chart #2
5 comments:
I find it interesting that many would assume that it was the Fed raising interest rates heading into the Great Recession that popped the real corporate dividend bubble.
What popped it this time? I have a theory. Some butterfly flapped its wings inappropriately somewhere deep in the South American rainforests, because it sure as heck wasn't the Fed raising interest rates!
Butterfly effect
In chaos theory, the butterfly effect is the sensitive dependence on initial conditions in which a small change in one state of a deterministic nonlinear system can result in large differences in a later state. The name of the effect, coined by Edward Lorenz, is derived from the metaphorical example of the details of a hurricane (exact time of formation, exact path taken) being influenced by minor perturbations such as the flapping of the wings of a distant butterfly several weeks earlier. Lorenz discovered the effect when he observed that runs of his weather model with initial condition data that was rounded in a seemingly inconsequential manner would fail to reproduce the results of runs with the unrounded initial condition data. A very small change in initial conditions had created a significantly different outcome.
1. Has the Government Transfer Company gone public yet?
2. If not, is there an Initial Public Offering I could get into?
3. As a taxpayer, how much am I allowed to invest?
Classic!
mab,
Hahaha! I had a lot of fun writing that! I'm glad it did not fall on blinded eyes! :)
What's it going to take to get you into the stock market today?
QE4
Fritz_O,
I'm sorry. I can't give you QE4 at the present time. We're all sold out!
There's a guy in the back alley scalping tickets to the QE7 playoffs though. The seating is fantastic! It's right on the ten trillion dollar line! ;)
Post a Comment