The Congressional Budget Office projected increases in the national debt and sustained federal budget deficits. The U.S. government will spend $1 trillion more than it collects in 2020 and deficits will reach or exceed that threshold every year for the foreseeable future.

The Wall Street Journal, Wednesday, January 28, 2020

What will it be? Which news item on what day will be the straw that breaks the back of the stock market camel? That news always comes when you least expect it and pops the current bubble and destroys your gain.

It seems to me that a one trillion dollar annual deficit should satisfy whatever conditions need to be met to crash the market. I’m told that the market mainly rides on a wave of investor confidence that carries us along week after week, year after year, until it doesn’t any more. I can tell you that my confidence gets pretty shaky at the prospect of adding a trillion to the national debt every year. Then there’s the impeachment and election year uncertainty. The likelihood of higher taxes. The specter of Russian hacking. And of course, the Middle East. Getting nervous.