Authored by Charles Hugh Smith via OfTwoMinds blog,
There's a profound difference between assets that produce no income and those that produce net income.
To those of us nutty enough to pore over dozens of pages of data on wealth and income in the U.S., the Federal Reserve's quarterly Z.1 reports and annual Survey of Consumer Finances (SCF) are treasure troves, as are I.R.S. tax and income reports.
We've written frequently of late about the coming wave of off-lease vehicles that threatens to flood the used car market with excess supply, crush used car prices and simultaneously wreak havoc on the new car market as well.
Authored by Lance Roberts via RealInvestmentAdvice.com,
I discussed yesterday, the apparent “myth” of the Fed’s proposed “balance sheet reduction” program as the most recent analysis shows a $13.5 billion “reinvestment” into their balance sheet which has helped fuel the recent market advance.
But therein lies the potential “fatal flaw” of the “bullish logic.”
Overheard on CNBC today... "today we get proof this is not a bubble..."
Nope..
h/t @Stalingrad_Poor
It is hardly a secret that thanks to nearly $4 trillion (at least) in credit creation in 2017 - more than the rest of the developed world combined - China has been the proverbial (and debt-funded) "growth" dynamo behind the recent period of "coordinated global growth." Unfortunately, much if not all of this was window dressing for the just concluded 19th Communist Party Congress, which in not so many words, made Xi Jinping into a de facto emperor with no apparent or otherwise heirs.