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Jesse Colombo Profile picture
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6 Feb, 4 tweets, 2 min read
U.S. margin debt is growing at the fastest pace on record - even faster than during the dot-com & housing bubbles.

This is another sentiment indicator that is worrisome from a contrarian perspective.

@SoberLook $SPY $QQQ
Also see:

See this, too:

And this as well:

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Jesse Colombo Profile picture
7 Feb
Global debt has soared to a record high.

The only reason why we're not in a full-blown global depression right now is because governments have binged even further on debt.

Don't be fooled by the soaring stock market; this is an extremely artificial environment.

$TLT $IEF Image
Don't be fooled or impressed by our soaring stock market.

Instead of a sign of health, this is a sign of an extremely unhealthy artificial economy.

Remember, Venezuela's stock market soared as people were starving. Image
Here's what's fueling the current speculative mania (RobinHood, Gamestop, SPACs, cryptos, etc.):

The U.S. M1 money supply has increased by an jaw-dropping 75% in the past year alone. This is happening globally, too.

All that liquidity is sloshing around looking for a home. Image
Read 5 tweets
Jesse Colombo Profile picture
7 Feb
Charles Hugh Smith: The Top 10% Is Doing Just Fine, While The Middle Class Is Dying on the Vine: charleshughsmith.blogspot.com/2021/02/the-to… @chsm1th Image
That piece contains an excellent chart of U.S. private sector financial assets as a % of GDP.

This is another way of visualizing the household wealth bubble that I've discussed so much.

Financial assets have become incredibly inflated due to ultra-low interest rates & QE. Image
If you want to understand the growing rich-poor gap (and why it is NOT the fault of capitalism), please check out the archive of my site Explaining Capitalism:

web.archive.org/web/2020062519… Image
Read 5 tweets
Jesse Colombo Profile picture
6 Feb
I know this story first circulated a few days ago, but I want to point something interesting out (see thread)-

"Alex Rodriguez' SPAC Files For $500 Million IPO":

zerohedge.com/markets/alex-r…
Notice the vague description of the potential business activities that A-Rod's "Slam" intends to pursue (see below).

I highly doubt that they've developed business plans for all those pursuits.

Who needs that when investors are just throwing you money?!
The current SPAC bubble has many parallels with the South Sea Bubble of 1720: en.wikipedia.org/wiki/South_Sea…

During that bubble, countless companies were formed to raise capital for whimsical ventures. Many were frauds.

They were called "bubbles" (that's where the term comes from!)
Read 9 tweets
Jesse Colombo Profile picture
6 Feb
In case you missed it, here's a thread about how I warned about the Texas/Houston energy bust a couple years ago, but it wasn't exactly well-received:

I approached the Houston Chronicle in 2018 because I wanted to write an editorial about the upcoming energy bust that I was warning about.

It was met with a resounding "meh." That's so typical of my experience in media, which is why I almost gave up.

The mainstream media & economics world only wants to hear your message if you are coming from a Keynesian (pro-Fed & money printing) or leftist perspective.

If you are pro-capitalism and free markets, you are shunned into oblivion. That's my story.

Read 4 tweets
Jesse Colombo Profile picture
5 Feb
A Bigger Risk Than GameStop? Beware the Ponzi Scheme Next Door: nytimes.com/2021/02/05/you…

"Experts have seen an increase in the frauds, many of which are preying on investors who feel they lost out on the market gains of the last few years."

by @sullivanpaul
Also see -

"The 24-year-old founder of Virgil Capital, which ran two cryptocurrency hedge funds, admitted to duping investors out of almost $100 million and using the money to support a lavish lifestyle."

bloomberg.com/news/articles/…

by @ChrisDolmetsch
Loose monetary policy (and the resulting speculative mania) is the reason for the surge of fraudulent activity - make no mistake about that.

This fraudulent activity is just one type of malinvestment that is resulting from central bank policies.

wiki.mises.org/wiki/Malinvest…
Read 4 tweets
Jesse Colombo Profile picture
5 Feb
Office Glut Comes to Houston, Texas With Oil Bust Leaving Towers Empty: bloombergquint.com/business/offic… by @johngitt $SLB $HAL Image
Houston ended last year with a 24% office-vacancy rate, the highest of any major U.S. city. After years of construction to accommodate an oil boom that’s now gone bust, buildings are sitting empty, values are plunging and mortgage defaults are piling up.

Guess who warned about the Houston energy bust two years in advance?

This New Yorker did, shortly after I moved to Houston and saw the warning signs ->

Read 8 tweets

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