axelrod608

Wall Street Breakfast: Must-Know News

"They" guess and place their bets...

Wall Street Breakfast: Must-Know News

Good job - a wide ranging "breakfast" buffet. But the news is troubling.

"The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures," The Fed Is it just me or is this expectable ? Hundreds of thousands of Americans are no longer getting paychecks this year, with another 100,000 scheduled to join them by year's end. Would not a slowdown in consumer spending be expected ? If so, why is the Fed trying to return to "normal" (whatever that is).

"... downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth " If the consumer accounts for 70% of the economy and the financial sector somewhere near half of the rest - and both are swirling in the bowl - is it realistic to expect any growth whatsoever ? Are these people kidding themselves or us ?

I remember writing over a year ago on the precipitous condition of pension funds, mostly "funded" by stock. When will we see the foolishness of that policy ? Pension funds should be funded like reserve insurance funds with assured value instruments.

It is bewildering to see, in a serious market trough, the flimsy underpinnings of what we used to think of as the greatest economy the world has ever known. And it is unsettling to see the actions our "leaders" are taking designed - at least in their minds - to fix the situation.

Consumer sentiment is at an all-time low and 9% of Americans say we're on the right track. Jusifiably so. I sure wish our "leaders" were doing more than "the same old thing". Reminds me of the line in Casablanca - "round up the usual suspects"....