This can't be a stock market bubble....

Today's Market Watch opinion piece insists that this can't be a stock bubble by pointing to all of the wrong indicators.  It points to a bunch of useless facts as the reason for this opinion:

• Unemployment rate is only 6.1%
• 2nd quarter GDP up 4.2%
• "Valuations are fair"
• "Fed tightening isn't a bad thing"
• Expect "rainy days" but then the sunshine will return

All of this incredible insight is coming from one Jeff Reeves.  Now I don't want to overstep here but Jeff does not look old enough to really have the experience needed to give advice to millions.  Jeff, is that a pimple on your chin?



 While taking cheap shots at babyface Jeff might be fun, the real things that people should be asking themselves are:

- Where is any mention of record margin debt? 
            Conveniently ignored.

-Where is any mention of extreme positive sentiment? 
             None mentioned.

Where is any mention of global meltdown in progress with Spain and Greece both at 25% unemployment or more?
             Yawn.  The world doesn't matter.  The US is decoupled...

Where is the talk about endless wars and rising protectionism?
             Oh that's right, war is good for the economy.

Where is the mention of the Fed's massive balance sheet that bought up assets which nobody else wanted in order to keep the banking system solvent?

Where is the mention of record numbers of people living off of government assistance?

Where is the mention of 17.5 trillion in US debt (which is growing exponentially)?  Jeff, of course you are going to see things get better when debt is used to fuel consumption today but it is not sustainable.  It is just pulling future demand forward.  When the future comes we will have to cut back massively to live within our means just like everyone else.  When that happens the stock market will collapse because nobody will have any real money to buy stocks and no credit will be available for that purpose either after all of the massive defaults that will occur.


Articles like Jeff's are just what Socionomics expects to see near major tops.  The herd cannot see the cliff because the actors are all watching each other looking for signs and signals.  As a result, the lemmings all scurry happily over the edge, all playing follow the false leaders.  Yes the market is a bubble and yes it will crash massively.