Recession Watch----We're On It!

One of the reasons we believe a mega-crash is on the way is that the stock market is priced for permanent full-employment perfection, world without end! But among the many things that our Keynesian central bankers have not accomplished is abolition of the business cycle. That's why the current 25X PE on the S&P 500 is so absurd. Corporate earnings are already down 19% from their September 2014 peak on an LTM basis, but that's even before the next economic downturn hits sectors like consumer discretionary, banking and technology.

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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.

David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.

This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.

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