The 30-Years Bubble—Why America Ain’t That Rich

The entire financial and economic narrative in today’s Bubble Finance world is virtually context- and history-free; it’s all about the short-term deltas and therefore exceedingly misleading and dangerous.
So when a big trend or condition is negative and unsustainable, you generally can’t even get a glimpse of it from the so-called “high-frequency” weekly, monthly and even quarterly data on which the financial press and its casino patrons thrive. And that’s not merely because most of the data from the government statistical mills is heavily massaged and modeled and often “adjusted” beyond recognition over 3-5 year intervals of statistical revision.
Beyond that, however, even medium term trends get largely ignored. That’s because the purpose of economic and financial data today is to facilitate daily (and hourly) trading in the casino—not inform long-term investors about underlying trends, conditions and prospects.

This post was published at David Stockmans Contra Corner on Monday, December 11th, 2017.

 

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