Real Income Collapse Offset By Debt And Asset Bubbles

Corporate Profits And Margins Peaked In 2014

Last 50 Years: This Decline In Earnings Always Led To An Equity Bear Market

The Latest GDP Data says something very similar about recessions

Ex-Consumption Nominal GDP Is Already In Recession

As Real Income and Savings Collapse

Factory Orders Plunge For Longest Streak In History

The S&P 500 parted ways with factory orders back in 2013!

Debt To Cash Flow the Highest In History

Desperate Central Bank Policy Crushing Real Income, GDP Held UP By Debt And Asset Bubbles

“The insanity  …. is no hindrance to … implementation”

————————————–

Corporate Profits And Margins Peaked In 2014

0816earningstopisin

The chart above shows that “US domestic corporate profits (and margins) put in the mother of all tops in the 2nd half of 2014. And at $60 Oil (never mind $39), we’re not going back there.” – Keith McCullough, Hedgeye CEO.

Last 50 Years: This Decline In Earnings Always Led To An Equity Bear Market

In fact, “Over the past half-century, we have never seen a decline in earnings of this magnitude without at least a 20% fall in stock prices, a hurdle many use to define a bear market.”

https://www.thefelderreport.com/2016/07/28/over-the-past-50-years-this-sort-of-earnings-recession-has-never-failed-to-trigger-a-bear-market/

This Week In Hedgeye Cartoons - GDP cartoon 05.29.2015

The Latest GDP Data says something very similar about recessions

0816GDPstats

 

 

 

 

0816oneyeargdp

 

http://nebula.wsimg.com/45a54fd5927122fb60336ef30e9bf5f3?AccessKeyId=372BE07F51497C9CD088&disposition=0&alloworigin=1

 

Ex-Consumption Nominal GDP IS Already In Recession

 

As Real Income and Savings Collapse

 

http://www.zerohedge.com/news/2016-08-02/hidden-todays-revised-personal-income-data-troubling-trend-us-consumer

 

Factory Orders Plunge For Longest Streak In History

 

 

The S&P 500 parted ways with factory orders back in 2013!

 

http://www.zerohedge.com/news/2016-08-04/factory-orders-plunge-20th-month-row-longest-streak-us-history

 

Debt To Cash Flow the Highest In History

http://www.zerohedge.com/news/2016-08-04/debt-ebitda-ratios-are-now-highest-history

 

Desperate Central Bank Policy Crushing Real Income, GDP Held UP By Debt And Asset Bubbles

Here is the chart that summarizes central bank policy. As household income has collapsed, only massive debt and asset bubbles have been able to sustain much weaker GDP growth.

 

“The insanity  …. is no hindrance to … implementation”

“There are only two ways to keep asset inflation alive: one is for central banks and states to buy up major chunks of all asset classes, i.e. hitting every higher bid regardless of the risks of such a strategy, and the second is to pay households to borrow money to chase future asset inflation, for example, paying households to buy a house with a mortgage.

The insanity of these two strategies is no hindrance to their implementation.The collapse of asset inflation will implode all the fiscal and financial promises based on ever-inflating assets and reveal the unsustainability of the status quo’s strategy of substituting debt and asset bubbles for stagnating real income.” – Charles Hugh Smith

http://www.oftwominds.com/blogaug16/assets-inflation8-16.html

 

 

 

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