By Tyler Durden
Authored by Sven Henrich via NorthmanTrader.com,
A bull market requiem:
Following the financial crisis the world needed coordinated structural solutions (and those would be hard requiring tough choices). Instead what the world got was coordinated central bank intervention which shrunk the middle class, made the rich richer and provided the rest with the illusion that things were getting better as pro forma unemployment rates shrunk and housing prices rose again and stock markets jumped from record to record. In the meantime politicians (of both parties) used the easy money illusion to do precisely nothing on the structural front. Instead they added debt and more debt and recent tax cuts just added to the combination of both: Wealth inequality and debt.
The data is very clear. Things are better for the few:
The greatest bull market ever (?) and 90% of income earners have less net worth than before the financial crisis? Given what it took on the intervention and debt fronts this is intellectual bankruptcy. Policy makers have failed the larger population. Full stop.
Income growth? Forget it:
Debt? A disaster zone with no end in sight:
And only getting worse. Much, much worse. Here’s the CBO projecting the coming explosion in debt which …read more