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Why the Economy Won't Ever Recover

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  • Description

    Trimtabs Investments Research CEO Charles Biderman on why he is bearish on the U.S. economy.

  • Duration 3:38
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So what's behind demand indicators turning significantly less favorable our next guest thinks the US economy will remain weak.

There is a much that the Fed will be able to do you joining us this Charles Biederman founder and CEO of trim tabs investment research.

And why he has to -- 100% bearish see you calling from fifty.

To a 100% bearish what are the main reason.

Well the main reasons as well as you said I don't think there's anything possible that.

Draw he couldn't do or Greenspan can do -- the basic problem in the developed countries of the world is that taxable income.

Is not.

A sufficient.

To generate tax revenues to pay current government expenditures.

Nor is it likely is taxable -- -- likely to grow fast enough to pay.

Future.

Government expenditures for the entitlements and all the other growth in government.

And then and that doesn't even include paying interest or.

Debt service on the existing -- how mop up pile of government debt so without a -- longer term.

Unless there's a fix to that basic problem.

I don't see how we get out of this.

Shorter term.

We've we've had been new troll for a long time more cautiously bullish that we -- -- cautiously bearish.

And we're seeing companies starting to sell more shares than their Biden.

We're not seeing.

Hadn't been comes wages and -- we track income tax collections every day.

And based on that wages and salaries are now drooping a -- Year over year.

In June and and where does not there's no growth.

Charles let me -- amended filing besides the fact that more than half the companies are missing on their sales estimates going forward which to me as much more significant than.

Earnings.

You lay out a lot of critical fundamentals that very few people would argue with.

Except the idea sentiment and so many times Charles doesn't sentiment over shadow market fundamentals like just late last week we had this huge rally because.

We heard from the ECB that it was determined to keep the Euro from falling apart.

Often times in the past couple of years the Federal Reserve has stepped did in this stimulus whether or not you agree it's a good idea or not.

It creates a wealth effect in the stock market.

Well that that's true QE1.

From march -- nine to march 10 stocks went up 50%.

But then they dropped 20% after QE1 ended.

By.

August of ten wind QE2 was announced that stocks went up 40%.

And after QE2 ended stocks went down 20% again and then QE3 started excuse me Operation Twist.

-- stock -- -- up 30%.

-- now.

You know so it's like it went up fifty that first -- 42 -- thirty.

Thirty using the trend does not look like government intervention and rigging the market.

Works the same all the -- Hello it's your job that I would just think -- a running out of time.

How would you react to this and how long would you -- this stamps because I agree with all of your arguments you know about personal income about corporate earnings about how anything the Fed -- isn't gonna have an impact at this point.

But I don't see anything reversing any of those trends anytime soon -- do you just take your money and hide under a mattress or.

Though I -- oblong gold -- long inflation protected securities on short big banks emerging markets.

Animal so long some tech and -- like that as well I don't think everything is going to help.

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