(snip)"I thought I was still asleep and merely dreaming when I opened up Barron's and saw that the earnings of the S&P 500 dropped to $28.75, which is down from last week's $45.95, which is down from last year's $78.80.
In case you were wondering, this level of earnings is down to where it was in 1995, and at that time the S&P 500 was selling for about $450, versus today's $770, and which makes the price-to-earnings soar to an almost-unheard-of 27! A P/E of 27! Hahahaha! So you can see why I thought I was dreaming!
This evaporation of earnings also probably explains why the S&P500 index is at $770.05, down from last year's $1,353.11, meaning that if you had bought the index last year, you have lost almost half your money in nominal terms, and you have lost ever more when calculated in inflation-adjusted terms, as the dollar has lost buying power in the last year which has made food and necessities get higher in price, higher and higher until I am screaming out the window, "The Federal Reserve, creating all that money and credit in the banks - so that somebody could borrow all that new money and use it to buy such mountains of public and private debt - is stupid-beyond-madness, you lowlife morons, and now we are all freaking doomed because all the world's money is going to crap as, suddenly - as part of a coordinated, global economic stimulus - whole mountains of money and credit are being created so that governments can try to spend their way out of bankruptcy! We're freaking doomed, you morons!"
And although my stupid neighbors protest about my screaming like that, the fact is that it is worse than that, because the U.S.A., with its $14 trillion economy, has a federal government that is going to spend, over the next year, all the money in their usual $3 trillion-plus budget, but also another $2 trillion or so over the next year! $5 trillion in government spending, at a cost of $3 trillion in new debt, all in a $14 trillion economy! Gahhhhh! We're freaking dooooooooomed!
I did not mention that there are only about 100 million non-government, non-taxpayer paid workers in the U.S.A., which means that there are only 100 million workers who can make a profit with which to pay taxes, which means that $5 trillion in government spending is a staggering $50,000 for Every Freaking One (EFO) of those non-government, non-taxpayer paid positions! And you think THAT is going to work out for the best? Hahahaha!
Well, most people (the majority) do; and maybe you do too. And if so, I love your optimism. In fact, I envy your sunny optimism, even as I deplore how stupid you are; (although I already knew you were pretty stupid because here you are, reading my stupid Mogambo Guru newsletter, and I gotta tell ya, that's a classic sign of stupidity!)"(snip)
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