Oh, it’s a bull market alright. Can nothing stop the QE induced party? The sun has come up and set a few times on this market, yet the DJ is still pumping the music and most importantly the drug dealers are still milling about the crowd.
Ibiza in pinstripes. Or if you prefer Las Vegas in pinstripes.
(From David Stockman’s Contra Corner)
“There are no markets left in any meaningful sense of the word, just a raging casino infected with the madness of the crowds and the central bank pied pipers who mesmerize them,” he writes on his blog.
That madness is illustrated in the months-long rise of Chinese stocks and the rebound of McDonald’s shares last week, Stockman says.
As for China, the Shanghai Composite Index has soared 121 percent in the last year. “And what has transpired in the land of red capitalism during that parabolic move?” Stockman asks.
“Why everything has gone virtually straight south because the most fantastic credit bubble in recorded history is beginning to burst.”