Weekly Indicators for June 15 – 19 at Seeking Alpha
by New Deal democrat
Weekly Indicators for June 15 – 19 at Seeking Alpha
My Weekly Indicators post is up at Seeking Alpha.Almost all of the metrics have improved off of their worst readings. Enough of the short leading indicators have improved so much that the short term forecast was upgraded to neutral as of this week.
As usual, clicking over and reading should bring you “up to the moment” on the economy, and it also rewards me with a penny or two for the effort I put into the endeavor.
With this “improvement” we hopefully might see the collapse of some of the most reckless hedge funds the next year, or earlier. Adding to them a couple of private equity sharks would be an icing on the cake, but this scum tends to be pretty resilient. They are masters of offloading losses on public.
Disconnect between the stock market casino and the status of the USA manufacturing is real and it can’t last forever. The FIRE sector which dominates the USA GDP is parasitic in nature, and parasite usually weakens the host to the point of collapse.
Moreover, Covid19 serves as a powerful catalyst for further degrading the neoliberal globalization even in areas that are not connected with the role of China.
As Herbert Stein put it on a different subject, but which now is fully applicable to the neoliberal globalization:
Per table 1 in https://fas.org/sgp/crs/misc/R45090.pdf , real wages for USA men at the 50% percentile level are down -5.1% over the 1979 to 2018 time frame. Now we can probably talk about over 10%.
That’s another sign that the USA financial casino might eventually go the way of Trump’s Taj Mahal.
And many middle class lemmings who are completely indoctrinated into neoliberalism and connected with it deification of markets might be mercilessly fleeced. Especially those who recklessly play with the stock market having zero understanding of the economics, and relying on some crazy “chartist” recommendations 😉
Or who stupidly preserved overweighed stocks allocation in the 401K plans after retirement. That might includes some “Vanguard loving” folk, who posts here.