Tag Archives: David Stockman
Is This What a Credit Bubble Looks Like?
There’s been some buzz recently about a pick-up in business lending. The six largest banks increased business loans at an average annual rate of 8.5% in the first quarter, according to a Wall Street Journal report last week. Other first … Continue reading
Tracking “Bubble Finance” Risks in a Single Chart
In his 712-page tour de force, The Great Deformation, David Stockman dissects America’s descent into the present era of “bubble finance.” He describes the housing bubble’s early stages as follows: The American savings deficit was transparent after the turn of … Continue reading
P/E Multiples, Deleveraging and the Big Experiment: Sizing Up the Next Bear Market
We last wrote about stock valuation in August, when we looked at three types of P/E multiples and argued that stocks were more stretched than you would think if you only relied on the simplest measure. Since then, we’ve had … Continue reading
Why We Shouldn’t Trust the Fed’s Inflation Target
Awhile back, I thought it might be interesting to create one of those island economy stories to demonstrate a problem with the Fed’s policy framework. I finally got around to it over the past week, after reading an article on the … Continue reading