• Insider
    © Kaarsten | Dreamstime.com

    Off the Cuff: Out of Order

    We are dependent on models that don't work
    by Adam Taggart

    Thursday, November 29, 2012, 4:36 PM

Enroll Now For enrolled members only. Enroll or Sign in to read the full article.

In this week's Off the Cuff with Mish & Chris podcast, Mish and Chris discuss:

  • Fiscal Cliff Follies
    • Whatever 'solution' is enacted won't solve much
  • The Broken U.S. Education Model
    • We are graduating a generation of debt slaves
  • Dangerously Optmistic Stock Prices
    • Assuming elevated earnings in perpetuity
  • Pension Fund Posion
    • No way these funds will meet their actuarial targets

While there are no guarantees that any progress will emerge from the Obama-Boehner showdown, what is clear is that the impact of any agreements (higher taxes and spending cuts) struck on the "Fiscal Cliff" will be GDP-negative. So plan for the headwinds on our economy to strengthen in force next year.

Despite this certainty, as Chris and Mish look across the markets today, they see way too much 'pricing for perfection.' For example, corporate profits are far above their historical norm due to a number of extraordinary events over the past few years. But their underlying stocks are priced as if these elevated earnings levels will continue unabated far into the future.

Enroll Now
Or Sign In with your enrolled account.

Related content
» More

No Comments on Off the Cuff: Out of Order

Enroll now or Sign In to read all member comments.