Kmart's Vision Quest (Musical Tribute)

February 17, 2016
Kmart to Offer Truly Brag-Worthy Deals Through New Sourcing Initiative

With an ongoing vision to make shopping fun again...



Swaying room as the music starts
Strangers making the most of the dark
Two by two their bodies become one

I see you through the smoky air
Can't you feel the weight of my stare?
You're so close but still a world away

Permanently High Plateau

The following chart shows household net worth divided by GDP with two starting points. The first is the 3rd quarter of 2003 and the second is the 3rd quarter of 2011 (exactly 8 years later to line up well with presidential elections and what not).


Click to enlarge.

I have a really good feeling about this! We don't yet have the data for the 4th quarter of 2015 and for the first quarter of 2016, but have no fear. I have projected it forward using the permanently high plateau technique first made famous in 1929! What's the worst that could happen?

There has never been a better time to lock in that permanently high plateau! Buy now or be priced out forever!

This is not investment advice. It's just the sarcastic opinion of a risk-averse retired saver who is skeptical that the future is so bright that he's gotta wear shades. That's all.

As a side note, don't expect more charts any time soon. This one has been on my mind for months and the lousy "sure thing" stock market performance so far this year made it irresistible, lol. Sigh.

Source Data:
St. Louis Fed: Custom Chart

A Cunning NIRP Plan

Ben Bernanke: We need to create a wealth effect. Now! Any ideas?

Sensei Bobo McChuckles: What if we eliminated one of the ways investors/savers could easily increase their wealth?

Ben Bernanke: I suppose we could set short-term interest rates to zero, but what good would that do? How would eliminating one way to easily increase wealth make everyone wealthier?

Sensei Bobo McChuckles: It would convince some to embrace riskier assets more prone to momentum. Momentum is good. As money piles in it would encourage even more money to pile in. It would create a momentum-based virtuous cycle of paper wealth creation!!

Ben Bernanke: Genius! Any risks?

Sensei Bobo McChuckles: Well, there would be some downside if momentum ever started to falter.

Ben Bernanke: How bad could it get?

Sensei Bobo McChuckles: Virtuous bubble cycles depend on ever-increasing confidence. Let's just say that our conversation should never be made public.

Ben Bernanke: It would look bad if the markets knew that I was consulting a clown?

Sensei Bobo McChuckles: Exactly.

Several years pass.

Janet Yellen: We need to create a wealth effect. Now! Any ideas?

Sensei Bobo McChuckles: What if we eliminated one of the ways investors/savers could easily avoid losing money?

Janet Yellen: I suppose we could set short-term interest rates below zero, but what good would that do?

Sensei Bobo McChuckles: I'd explain but I'm actually off to perform at a birthday party in Tokyo for a little girl with big dreams. Dogs! Ponies! Clowns!

Janet Yellen: A Japanese dog and pony and clown show?

Sensei Bobo McChuckles: Exactly. Would you believe that some people actually wonder how I became a Federal Reserve financial consultant?