Between January and the start of the tapering talk in late May, the stock market added $2.8 trillion in market value. But the size of the U.S. economy expanded just $500 billion, Pomboy notes. Credit issuance during this stretch totaled—guess what?—almost exactly $2.3 trillion. "If growth—actual and borrowed—dictate where stocks are headed, then the quartering of issuance in the last six weeks portends ugly stuff ahead," Pomboy says.
Saturday, July 13, 2013
This is fascinating from Stephanie Pomboy via Barron's;
Posted by Roger Nusbaum at 7:52 AM