3 replies to this topic

[.Blizzard]

http://www.zerohedge...ised-lower-soon

[arbman]

Perhaps... In any case, the report has everything you needed to know that there wasn't really any improvement anyway and I explained my views here. In summary, it is reacting to Fed injections with the increase in its price component and some labor market improvements that I mainly attribute to GM's recovery --or perhaps a partial survey is biased that way. There is not much improvements in the orders and the inventories seem to be building up...

[Islander]

These are the reports known to have impact and the temptation of those in power is so easy, just fudge it this time.

In the longer run, keep your eye on jobs. The rest is just smoke. Until jobs show measurable improvements, not just variance with respect to a low mean value,

Nothing happens in the economy. In the long run we have the prospects of a major decline due only to lack of employment, and it is the same in the EU, and Japan to some degree, and China, who knows?

Yesterday John Taylor at SU said more EQ was kiss of death, and that stimulus was going to lead to inflation, but before that - nasty deflation.

All ye who enter here, abandon hope and yes, be a little short.

I am, Islander

Edited by Islander, 02 September 2010 - 01:45 PM.

[dasein]

all government giveaways result in a misallocation of capital - which in the short run skews economic activity to less productive areas, which in turn hinders true economic growth. besides the fact that they have to get that money form the productive sector.

in short, any subsidy is counterproductive and while goverment should inhibit destructive behavior ( the question of the commons for example) it should only do so with penalties - and not like the SEC penalty of 4% on 14 million illegal gains.

here is a nice look at government mining subsidies:

http://www.ewg.org/m...cust_id=-985210

Edited by dasein, 02 September 2010 - 02:14 PM.