Bubble Alert: Meet The $25 Million Grilled Cheese Truck, by Tim Price

A company with $1 million in assets and $3 million in liabilities, with 3rd quarter of 2014 sales of less than $1 million and a net loss of more than $900,000, just went public and the stock market values this company at $100 million plus. And what is this amazing companies product? Gourmet grilled cheese sandwiches. From Tim Price at sovereignman.com, via davidstockmanscontracorner.com:

There are some time-honoured signs of an impending market top.

One of them is that margin debt has peaked.

Another is that interest rates are going through the floor.

Another is that the velocity of money is also going through the floor.

Another is that Goldman Sachs’ Senior US Investment Strategist Abby Joseph Cohen reckons the stock market is relatively cheap, an opinion which she generously gave at a recent Barrons roundtable.

Barrons actually gave us two signs of a market top for the price of one (but then everything’s devalued these days) – their February 6th edition pointed out that the value of fine art sold at auction had quadrupled from $3.9 billion in 2004 to some $16.2 billion in 2014.

Barrons then tastefully offered readers a choice between the conclusions of malign ‘bubble’ and benign ‘boom’.

The problem is that in an environment of ubiquitous government manipulation, markets can trade at whatever levels central bankers want them to trade at, for a period at least.

So we’re not going to be rash enough to call a market top; we’ll merely draw attention to some anecdotal evidence of a certain, how shall we put it, irrational exuberance at work in the US stock market.

http://davidstockmanscontracorner.com/bubble-alert-meet-the-25-million-grilled-cheese-truck/

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