David Stockman's Contra Corner has it all covered---Washington, Wall Street, Wars and the World (bit.ly/3Uhh0Xb)

The GOP’s Original Fiscal Sin, Part 3 davidstockman.substack.com/p… We said in Part 2 that you can’t run a permanent fiscal policy based on a 23% of GDP spending line versus a revenue take of just 17%, which was the level of Federal taxation during the halcyon years of the Eisenhower era. Way too much spending water has gone over the dam since then, accompanied by way too little political gumption among the GOPs rank-and-file politicians to take on the Washington spending machine. Instead, the present day GOP simply declares that tax cuts are the answer to everything and that we would grow our way out of today’s towering, chronic and worsening albatross of deficits and debt if we would only return to the supply-side tax cut path laid out by President Reagan in 1981.

No, ding dong. like every other American, his entitled to his opinions no matter how out -to-lunch they may be or how much you dislike them. Full stop. It’s called free speech—-the very essence of America’s greatness.

The GOP's Original Fiscal Sin, Part 3 - davidstockmanscontracorner.c… We said in Part 2 that you can't run a permanent fiscal policy based on a 23% of GDP spending line versus a revenue take of just 17%, which was the level of Federal taxation during the halcyon years of the Eisenh...

A banana trading company helped trigger a CIA-backed coup in Guatemala — 200,000 people died in that conflict. I tried telling such stories on CNN. They showed me the door. Ana Kasparian says that’s what happens when corporate interests and journalism become one. “The corporate interests are always going to reign supreme.” Full interview on Sanchez Effect.

If homes are in desperately short supply, explain this: • Builders cutting prices • Mortgage-rate buydowns • Huge closing-cost incentives • Builder confidence near 2007 levels Businesses with overwhelming demand don’t bribe customers to buy. Follow the incentives.

Q.E.D.

"So here we have the man who flew to Istanbul in April 2022 to pressure Zelensky against accepting a settlement that would have ended the war, now demanding that British forces be sent to Ukraine. The sheer audacity is staggering: after helping derail negotiations, he now wants Britain to put its own troops on the line."

I'll take the unders. As the clock ticks closer to a Dem election landslide and the prospect of utter humiliation via impeachment, conviction and removal thereafter, Trumpety will go full retard TACO MAN. You can count on it.

The last time US Treasury yields were this high, total US national debt stood at just $8.9 trillion. Today, US debt stands at $40.1 trillion. That's +$31.2 trillion more, or over 4.5 TIMES higher. This means every 1 percentage point in the average cost of servicing the debt now translates to ~$401 billion per year in interest expense. In 2007, the same 1 percentage point translated to just ~$89 billion. That’s an additional ~$312 BILLION in annual interest expense for every percentage point increase in borrowing cost. This is a vastly different situation than it was 19 years ago. The bond market matters more now than ever.

What a first class jerk!

🦔Over 13,500 unsold companies are stuck in private equity portfolios right now. PE firms buy companies with borrowed money, load the debt onto the company, and plan to sell in a few years. That model needs low rates and willing buyers. It has neither. PE-backed companies accounted for the majority of large corporate bankruptcies in 2025 and first half of 2026. Saks, Eddie Bauer, JoAnn, and hospital chain Steward Health Care all went down under PE ownership. Bloomberg reported this week that dealmakers are now leaving major funds because carried interest payouts have dried up. My Take The PE model worked for a decade because rates were near zero and you could flip anything. That era is over and these firms are trapped. They can't sell because no buyer will pay what they need to turn a profit, and they can't hold much longer because the companies are drowning in debt at 5% rates that the PE firm itself doesn't pay. The company pays it. Your hospital pays it. Your dentist pays it. JoAnn paid it until it couldn't. Thirteen million Americans work for PE-owned companies. When Steward Health Care went down, entire communities lost their only hospital. The PE firm walked away and raised another fund. I think this is going to be one of the biggest stories of 2027. The exit drought ends when rates come down. The Fed just hiked. These companies are stuck with debt they took on at prices that assumed money would stay cheap forever, and every month they sit unsold the finance numbers get worse. The firms that bought them will survive. The companies and the people who work there won't all be that lucky. Hedgie🤗

55% of S&P 500 stocks are now trading below their 200-day moving average, the worst market breadth in 6 months 🚨 🚨

This is adjusted for inflation! All figures in constant 2025 dollars of purchasing power.

Netanyahu let 7 October happen. IDF spies in Gaza witnessed breakout rehearsals. Netanyahu moved 2 of 3 IDF brigades to the West Bank, creating security vacuum. Nova Dance party was cited 3 miles from Gaza. IDF helicopter gunships, not Hamas, had the firepower to blow up cars.

The GOP’s Original Fiscal Sin, Part 2 davidstockman.substack.com/p… Somewhere in the vicinity of the early 1980s, the GOP of the old time religion of balanced budgets and small government got hijacked by political and ideological factions that functionally were the sworn enemies of fiscal rectitude. And that was a giant history-changing problem for America because by then the Dems had already become the full-throttle pro-government party, baptized in the statist gospels of the New Deal and Great Society. Needless to say, when the fiscal governance of a great democracy degenerates into a battle between Dem spenders and Republican deficits-don’t-matter supply-siders and neocon warmongers, fiscal rectitude goes to hell in a hand-basket.