by John Rubino, Dollar Collapse:
It’s been a strange couple of weeks. US stocks are not far from all-time records, both nominally and adjusted for inflation. Home prices are soaring – up 33% y-o-y in the Bay Area, to take just one of many possible examples. A casual observer might assume that things are going great.
But one level down on the headline ladder it’s a very different story. The list of ominous events and trends has suddenly grown a lot longer. Among the bombs that went off last week:
Detroit declares bankruptcy: For years, analysts have been looking at the balance sheets and pension funds of dysfunctional entities like California, Illinois, Chicago, Detroit, and Oakland and wondering how much longer they could con the markets into believing that they were in any way capable of paying off their debts or making good on their pension obligations.
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