Thursday Oct 17 2013
One economist thinks the debt deal is no deal at all. Indeed there is still no budget. I suspect this Administration can run the Debt Ceiling up another trillion in one year, then what?
CIti chimes in with the same conclusion. Check out the chart on mandatory spending in this article.
Paul Ryan agrees this is no deal.
Tom Demark likens the stock market to September 1929.
And I thoought a $10 M collectible Ferrari or or $30 M Mercedes was a big deal, how about a $10 M Victoria Secret Bra? Showing off wealth is a another feature of market tops.
An alert reader responds to my wondering about oil prices with this observation on the XLE
XLE
The XLE for energy is in a contracting wedge, much as it was going into the 2008 high. THis sort of massive optimism usually leads to a market top.
I am with the analysts cited in the first two articles. This is the brinksmanship the administration wants. Now it announces no more brinksmanship, ie, we get what we want when we want it. Revenue is always about 18% of GDP no matter where tax rates are placed. With spending at 24% of GDP, this is the ticket for long term disaster.
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