Why has Warren Mosler been bearish for so long?

On Warren Mosler's website his economic views have been bearish for something like the last four years. I cannot understand this.

Not only was the deficit (something he talks about all the time) last year the highest in 6 years (both nominally and as a percent of GDP), but this year it will be even higher. In fact, it's already three-fourth's of last year's total and we're not even halfway through the fiscal year. Shouldn't he be bullish?

Moreover, government spending is going to break another record. Government spending is the "flow" in the "stock/flow" discussion (whereas the deficit is the stock) and it's what drives income, profits and overall economic activity. You don't even know what the deficit is going to be until the government spends first. (He even says, "gov't spends first then taxes later." So why not look at flows?)

Finally, when he talks about Fed rate hikes he says they "add to income via the interest channel," which is true. Meanwhile the Fed has been raising rates for the past 3+ years and he's still bearish?

Frankly I don't understand his constant bearishness. It's very odd. It's like he ignores his very own MMT concepts when looking at the economy. Every post on his website is about how this or that metric is slowing and those posts have been going on for years, yet gov't spending continues to rise, the economy continues to expand and the stock market continues to make new highs.

Really, I find it very strange.

Some great guys to fade are just now getting bearish on stocks

Well, one of my favorites, Bill Gross, is out there telling everyone to "be careful." Gross says that the economy could tank because of debt and taper, bringing stocks down with it and that's why he's buying bonds.

Gross has been as cold as ice as, well, forever. Or, at least since Paul McCulley (Pimco former chief economist) retired in 2010. McCulley was/is an MMT guy. How 'bout that?

Since McCulley left Gross has been selling bonds when he should have been buying them and buying bonds when he should have been selling them. Pimco has lost a ton of clients as this blog predicted way before it happened.

I can tell you this, one of the best techniques I learned during my days as a floor trader was to fade guys who were cold and they don't get any colder than Gross, so I'm planning on fading him.

Next there's Tom DeMark, some technical kook who bizarrely has this huge following (as I scratch my head) many of whom are big time hedge fund guys. Personally I find his analysis to be about as rational as the practice of voodoo.

DeMark was on CNBC (where else?) today where he says that there may be a 40% stock market crash in the next three days. He goes into some crazy explanation that talks about 1929 and the number of days leading up to that crash and then tries to use that as a basis for his call now. All crazy talk. You can see why, if you know what you are doing, you can really make money as a trader because there are just a bunch of crazies out there making calls on the market that have absolutely no clue as to what the hell they are talking about.

(Take my Forex course! You'll see how to make money!!)

Anyway suffice it to say I'm seeing a lot of hysteria from people who are either colder than the polar vortex that is currently invading half the United States or just plain crazy. That's why I'm buying stocks down here and although I wasn't planning on selling bonds, since Gross is saying he wants to be a buyer then, ahhh, what the heck, I'll sell the damn bonds, too!