U.S. Economy

The financial media talks about massive government and private debt incessantly. But there is one rising debt load that no one is talking about, and it could bring about another market crash.

Profits have been falling for some time, and yet wages are rising across the U.S. The situation is untenable, and Wall Street is eventually going to see through this mirage.

The market has grown used to cries of “Deflation!” and dovish Fed speeches. So much so, that early indicators are being ignored. The fact is, inflation is about to blindside Wall Street.

Share buybacks are an integral part of the market, pumping more than $2.7 trillion into Wall Street since 2009. With buybacks fading amid an earnings recession, the bull market may be on its last legs.

Adam Smith is a favorite of free market advocates, but many only hear what they want and ignore the rest. With the free market far from free, it’s time to ask, “What would Adam Smith do?”