Significant economic indicators were showing weakness, Wall Street Rally continues
These two articles were juxtaposed in the NYT today. At a casual glance they look contradictory, and in my experience in my personal sphere no one has asked for this to be explained in the political arena. Maybe because I have a porcupine sort of personality. We are apt to discuss parts more deeply but not so much connections. If you were running for office how would you develop the narrative?
Fed Officials’ Comments Underscore Divisions Over Action
By BINYAMIN APPELBAUM (NYT)
Eric S. Rosengren, president of the Boston Fed, said significant economic indicators were showing weakness, reinforcing the need for the Fed to expand its holdings.
Wall Street Rally Continues
By THE ASSOCIATED PRESS (NYT)
The markets rose Monday, a day without any economic news and with investors still feeling optimistic after last week’s reports on jobs.
The market has been disassociated from the labor economy for decades. Currently a rising market is a sign of just how much money is still moving up or I should say a sign of just how little is “trickling down”. It is money looking for a home in any place other than the workers wages.
My thinking comes from articles showing that rising earnings are not coming from rising revenue but cost control. Can you say labor busting? World wide this has been the MO. I think we may be finally entering that part of the cycle where “emerging markets” can emerg any further as the vase base of such economies are beyond tapped out. Where is China and it’s growth if We aren’t buying? For example.
Which when you realize as you post that there is a problem in paradise shows how much of a dead end business’ approach to raising earnings has become. Of course, there is always a chance someone will come up with a new means of creating a bubble on what’s left of the 99%’s income and wealth.
My home page for years is Yahoo’s financial page. I love to see what the market numbers are and then read the headline news stories titles. I never fails to amuse.
The operation of the global asset debt macroeconomic system can be observed in the long term saturation curves of the quadrillion dollar equivalent system’s two countervailing tradeble assets: hegemonc sovereign debt (US long term debt) and the greatly tax advantaged equity class.
The daily news is tangential epiphenomena to the deterministic saturation curves of two countervailing assets.
The deterministic self-assembly and predictable mathematical patterns of evolution of these countervailing asset curves and the corresponding cycles raise asset debt saturation macroeconomics to the level of a science equivalent to physics and chemistry and biology.
The asset debt macroeconomic system is a nonlinear system and the ongoing simple mathematical patterns are timed with synchronized bad debt default – debt which will not be repaid – and corresponding (non hegemonic sovereign debt) asset valuation collapse – both of which will be historic in scale.