OF THE
TIMES
"...Twitter, is all that is required to remind us that once again markets are trading in the nosebleed section of history, rivaling even the madness of March 2000."Behind the madness
"We have been shoving zero-cost money into the financial markets for 6-years running," he said. "That's the kerosene that drives speculative trading - the carry trades. That's what the gamblers use to fund their position as they move from one momentum play and trade to another."And that, he says, is not sustainable. While Stockman believes tech stocks are especially overvalued, he warns that it's not just tech valuations that are inflated. "Everything's massively overvalued, and it's predicated on zero-cost overnight money that continues these carry trades; It can't continue."
"When the trades begin to unwind because the carry cost has to normalize, you're going to have a dramatic re-pricing dislocation in these financial markets."As Yahoo Finance's Lauren Lyster points out in the associated video, investors who heeded Stockman's advice last year would have missed out on a 28% run-up in stocks. But Stockman remains steadfast in his belief that the current Fed policy and the resultant market behavior can not continue. "I think what the Fed is doing is so unprecedented, what is happening in the markets is so unnatural," he said. "This is dangerous, combustible stuff, and I don't know when the explosion occurs - when the collapse suddenly is upon us - but when it happens, people will be happy that they got out of the way if they did."
Comment: Anything that improves living conditions for US veterans is helpful, but it's obviously a huge band-aid covering a problem of epic proportions. The VA is busy recruiting new doctors while trying to overhaul the corrupt VA system. Considering the complete lack of empathy the psychopaths in charge have for those humans they consider 'cannon-fodder' these feeble attempts will come to naught.