THIS IS A HUGE DIVERGENCE WITH STOCK PRICES.....something gotta give....they usually move in LOCK STEP!
In March of 2009, the Federal Reserve launched an historic quantitative easing, monetization, and liquidity scheme to pull the economy out of its tailspin. If it worked, you could not tell from the unemployment figures.
WHat we NEED to see, for hope of filtering into REAL WORLD ECONOMY is increase in bank lending and increase in small business and consumer confidence.....which could, should translate and in the past did into increased economic activity.
CEO Confidence Declines
08 Oct. 2010
"The Conference Board Measure of CEO Confidence™, which was unchanged in the second quarter of 2010, declined in the third quarter. The Measure now reads 50, down from 62 last quarter (a reading of more than 50 points reflects more positive than negative responses).
Says Lynn Franco, Director of The Conference Board Consumer Research Center: “CEO confidence has cooled considerably in the second half of 2010, as has the U.S. economy. "
Consumers
"Says Lynn Franco, Director of The Conference Board Consumer Research Center: “September’s pull-back in confidence was due to less favorable business and labor market conditions, coupled with a more pessimistic short-term outlook. Overall, consumers’ confidence in the state of the economy remains quite grim. And, with so few expecting conditions to improve in the near term, the pace of economic growth is not likely to pick up in the coming months.”
WHat we NEED to see, for hope of filtering into REAL WORLD ECONOMY is increase in bank lending and increase in small business and consumer confidence.....which could, should translate and in the past did into increased economic activity.
CEO Confidence Declines
08 Oct. 2010
"The Conference Board Measure of CEO Confidence™, which was unchanged in the second quarter of 2010, declined in the third quarter. The Measure now reads 50, down from 62 last quarter (a reading of more than 50 points reflects more positive than negative responses).
Says Lynn Franco, Director of The Conference Board Consumer Research Center: “CEO confidence has cooled considerably in the second half of 2010, as has the U.S. economy. "
Consumers
"Says Lynn Franco, Director of The Conference Board Consumer Research Center: “September’s pull-back in confidence was due to less favorable business and labor market conditions, coupled with a more pessimistic short-term outlook. Overall, consumers’ confidence in the state of the economy remains quite grim. And, with so few expecting conditions to improve in the near term, the pace of economic growth is not likely to pick up in the coming months.”
OK , so we stimulate commodities and destroy $ value making things we NEED more expensive, we KILL the ability of retirees and conservative investors their RIGHT to a fair rate on their savings, 0% FED rate for 2 years and TRILLIONS in QE have not jogged bank lending, nor created jobs...HERE....record GOV assistance has run out for many......but THEY would have you focus on what? the rising tide of paper assets?
WHO BENEFITS from a rising stock market? RECORD amounts have been taken OUT of stocks and 401K plans just so people can survive....we have this record OUTFLOW....low volumes, yet an ever march higher....I smell smoke!
And as SOON as the crack addict junkie market saw QE ending in late SPring.....we have a weak summer stock market, so???? IN late AUGUST we got the FED's POMO actions and up we went...take away the crack and down she goes.....but now needing ever more crack just to run in place.
I ask you, if we aren't stimulating economy, creating jobs, raising both small biz and consumer confidence, resurrecting the housing market, dealing with bank bad debt
(now FRAUD)....restructuring as you may....sending even MORE jobs and prosperity overseas.......why would the mere thought of another ROUND of CRACK (QE2) make a hill of beans difference?
AVG Joe has most tied up in home, ABOVE avg Joe in STOCKS.....ULTRA RICH in stock dividends.....why throw gasoline onto the fire?...NOV elections approach....answer (can't paper over this level of problems and NOT ONE SINGLE RAT BROUGHT TO JUSTICE in the face of historic crimes and crisis.....ain't that great?)
Duratek
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