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Highlighted
Advisor

one of the bad things that is going to happen now

among several.

 

A greatly underappreciated factor in the stock market is the irresistably huge incentive to lie.

 

If you're a middle aged accountant with CFO type credentials, you have two choices. You can either spend your time figuring out ways to produce the numbers that the CEO and board want or you can open an HR Block office.

 

And if you play along the risks are minimal and you will become rich- maybe not quite as rich as the top guys but better than a kick in the butt.A fair amount of it is even semi-legal, if deceptive.

 

If the compensation is mostly in term of stock you'll also get a very favorable tax rate.

 

Crashes are part of the game because you can use those to cover your tracks as in 2000 and 2008- throw in everything but the kitchen think and stand around with everybody else saying "whocouldathunkit?"

 

After six years of expansion and bull market we're entering that part of the cycle.

4 Replies
Highlighted
Senior Advisor

Re: one of the bad things that is going to happen now


@hardnox wrote:

among several.

 

A greatly underappreciated factor in the stock market is the irresistably huge incentive to lie.

 

If you're a middle aged accountant with CFO type credentials, you have two choices. You can either spend your time figuring out ways to produce the numbers that the CEO and board want or you can open an HR Block office.

 

And if you play along the risks are minimal and you will become rich- maybe not quite as rich as the top guys but better than a kick in the butt.A fair amount of it is even semi-legal, if deceptive.

 

If the compensation is mostly in term of stock you'll also get a very favorable tax rate.

 

Crashes are part of the game because you can use those to cover your tracks as in 2000 and 2008- throw in everything but the kitchen think and stand around with everybody else saying "whocouldathunkit?"

 

After six years of expansion and bull market we're entering that part of the cycle.


Time for QE infinity.

Highlighted
Advisor

Re: one of the bad things that is going to happen now

Probably preferable to the Banana Republicans' Kansas Initiative.

Highlighted
Honored Advisor

Re: one of the bad things that is going to happen now

3020 is right, the fed will have to pull the helicopter out of the hanger, unless they want a depression.

 

Peter Schiff says that the fed pricked the bubble with that 1/4 point rate increase...that is how bad things are and some say that "after the fed raised rates, rates actually went down" .  Inflation should be the last thing on the fed`s mind right now.

 

Wall Street has already been running on lies and cooked books, companies propping up their own stock and fed QE finding it`s way into stocks. i`m afraid the only way out is QE.

 

https://www.youtube.com/watch?v=5sie11QXI_Q

Highlighted
Advisor

Re: one of the bad things that is going to happen now

Meh, looked like a fairly run of the mill topping process to me.

 

But yeah, loading up debt and cooking books is a problem and as the saying goes we'll find out who'd swimming naked when the tide goes out.

 

By almost any measure the "natural" rate of interest is very low in this economy anyway. All QE does is squash the long end down a bit further.