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Real economy vs Paper economy


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#1 stocks

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Posted 16 May 2016 - 03:00 PM

In the modern post-war industrial era (1950-1980):

 

The excitement was in the actual economy of Main Street business.  The giants of industry created businesses, built things, manufactured products, created innovation and originated internal domestic wealth in a fast-paced real economy.  Natural peaks and economic valleys, as the GDP expanded and contracted, based on internal economic factors of labor, energy, monetary policy and regulation.

 

However, mid 1970’s  bank regulators began issuing Glass–Steagall interpretations -that were upheld by courts- and permitted banks and their affiliates to engage in an increasing variety and amount of securities activities.   After years of continual erosion of the Glass-Steagall firewall, eventually it disappeared.

 

This became the origin of the slow-motion explosion of investment banking.  If you look back historically from today toward 1980 (ish) what you will find is this is also the ultimate fork where economic globalism began overtaking economic nationalism.

 

The second economy, which ultimately became the global economy, is also the Wall Street investment economy.   Two divergent economies: Wall Street (paper), and Main Street (real).

 

The politicians became more valuable to the Wall Street team than the Main Street team, and Wall Street had deeper pockets because their economy was now larger.

 

https://theconservat...ant-opposition/

 


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#2 stocks

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Posted 21 May 2016 - 07:57 AM

In Praise of Hard Industries: Why Manufacturing, Not the Information Economy, Is the key to Future Prosperity

 

"Economic success continues to flow to nations with advanced manufacturing bases. And what looks like a sustained boom for information-based economies will in the end turn out to have been a mirage."

 

 

 

http://www.amazon.co...DV28JYM379TF4DN


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#3 AChartist

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Posted 22 May 2016 - 03:23 PM

I have no use for their technology. I calculate my cycles is about what I can see is different. 

 

 

what, the white trash didnt have a job, house, medical care like $100 to deliver a baby with a week hospital stay,

 

before al gore invented the internet, at the moral hazard destruction of paying for it with internet porn technology?


"marxism-lennonism-communism always fails and never worked, because I know

some of them, and they don't work"  M.Jordan


#4 stocks

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Posted 20 July 2016 - 07:47 AM

 

However, mid 1970’s  bank regulators began issuing Glass–Steagall interpretations -that were upheld by courts- and permitted banks and their affiliates to engage in an increasing variety and amount of securities activities.   After years of continual erosion of the Glass-Steagall firewall, eventually it disappeared.

 

This became the origin of the slow-motion explosion of investment banking.  If you look back historically from today toward 1980 (ish) what you will find is this is also the ultimate fork where economic globalism began overtaking economic nationalism.

 

The second economy, which ultimately became the global economy, is also the Wall Street investment economy.   Two divergent economies: Wall Street (paper), and Main Street (real).

 

 

 

GOP Platform Calls for Revival of Glass-Steagall

 

The Republican Party platform calls for restoring the Glass-Steagall law that separated commercial-banking and securities activities at Wall Street firms, a regulatory change advocated by liberal Sens. Elizabeth Warren and Bernie Sanders and an unexpected departure from House Republicans’ agenda.

 

 

http://www.wsj.com/a...gall-1468876558


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Gaia / Planet Worship was the pseudo-religion of the left. Now it's Harry Potter in public, 50 Shades of Grey in private


#5 stocks

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Posted 04 August 2016 - 09:21 AM

Companies are “failing to grow organically”

 

Instead of investing in growth-producing activities, CEOs go out and buy other companies, particularly their competitors.

 

 

Buying competitors – effectively getting rid of competition – takes pressure off these companies to innovate and perform, and they’re all hoping to gain some pricing power with these strategies. This has worked miracles in healthcare, where prices have shot up as consolidation has become a pandemic strategy, no matter how large and unwieldy the company, or how concentrated and monopolistic the sector.

 

The number of publicly listed companies traded on U.S. exchanges has been cut in half in the past 20 years – from about 7,300 to 3,700.

In a perfect, growing world, the market would have doubled the number of big public companies instead of halving it.

 

Every aspect of Corporate America has become financialized. Financial engineering – with everyone’s knowing consent, a phenomenon we’ve come to call “consensual hallucination” – is the top corporate strategy to support the top corporate goal: inflate the stock price at any and all costs. Nothing else matters. Not even sales and profits. Just the stock price. That’s a perversion of a perversion.

 

 

http://wolfstreet.co...conomic-growth/

 

 


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Gaia / Planet Worship was the pseudo-religion of the left. Now it's Harry Potter in public, 50 Shades of Grey in private


#6 stocks

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Posted 03 December 2016 - 02:18 PM

In Praise of Hard Industries: Why Manufacturing, Not the Information Economy, Is the key to Future Prosperity

 

"Economic success continues to flow to nations with advanced manufacturing bases. And what looks like a sustained boom for information-based economies will in the end turn out to have been a mirage."

 

http://www.amazon.co...DV28JYM379TF4DN

 

 

 

The new White House will embrace the jobs that fracking and pipelines can bring.

 

  Natural gas fracking is the force reawakening manufacturing opportunity in the Rust Belt, timed perfectly for Mr. Trump’s arrival.

 

  A Brazilian company, Braskem, just opted to build a $500 million plastics plant in Texas, not Philadelphia—(home to 85% Obama voters)—for one reason only: lack of pipeline infrastructure.   A Rust Belt renaissance that might have recaptured for Democrats the lost love of the American worker will become a halo for Team Trump instead. 

 

  Shell is going ahead with a $6 billion petrochemical plant on the site of an old zinc smelter on the Ohio River in hard-hit Appalachia.

 

The plant, known as Shell Appalachia, will generate 6,000 construction jobs for several years, plus 600 full-time plant jobs, plus thousands more jobs indirectly for companies that make plastics, steel pipe, sound proofing for gas compressors, pickup trucks, housing etc., etc.

 

A Thai company is eyeing a second giant ethylene plant nearby in eastern Ohio. Guess who will get credit for lifting the fortunes of a region presidents have been promising to help since Kennedy?

 

http://www.wsj.com/a...bama-1480723697


Edited by stocks, 03 December 2016 - 02:19 PM.

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Gaia / Planet Worship was the pseudo-religion of the left. Now it's Harry Potter in public, 50 Shades of Grey in private


#7 AChartist

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Posted 03 December 2016 - 11:02 PM

its unbelievable fraud. I explained it this way. Numbers might be off some because I havent looked in a while

 

but this is the gist. If SP500 global final sales are 6T that is about what gdp is, ok add 1T for everthing else.

 

And that is reselling chinese stuff so g domestic product is much less say 3-4T.

 

No stock trading volume doesnt count. No multiple recounting of the stages to final sales doesnt count, final

 

sales includes all the steps there are. Counting the actors salary and then counting the box office receipts is double

 

counting.

 

But is gets worse, the total tax take is 4T approaching 100% of gpd, where laffer curve chokes off economy above 12%.

 

100% tax is a long way from 12%.

 

You dont change natural universal law, newtons laws, thermodynamics, counting, none of it.

 

there is hell to pay for satanism


"marxism-lennonism-communism always fails and never worked, because I know

some of them, and they don't work"  M.Jordan


#8 stocks

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Posted 24 January 2017 - 10:36 AM

Union Leaders Praise President Trump for Removal of TPP…

 

Leadership from construction/manufacturing, pipe fitters, steel workers and industrial machinist unions met today with President Trump and exit the meeting with incredible praise for the respect he showed them.

 

 

Let that sink in.  Union Leadership praising a Republican President. This is the leading edge of a tectonic political realignment.

 

 


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Gaia / Planet Worship was the pseudo-religion of the left. Now it's Harry Potter in public, 50 Shades of Grey in private