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  • Congress Asks: Is The Fed Creating The Next Financial Meltdown? [View article]
    Hi Asby - your comment has me thinking;
    "...might be sufficient to keep up with global consumption since we're in a period of global over capacity, anyway".

    In a different string on income inequality, I linked (can't find the link off hand) how stock buybacks and dividends have chewed up most all (~85%) earnings -- thus the primary reason stocks have risen so strongly. At the same time, cap ex has declined because of the buy backs - thus the underlying strength of domestic corp's is compromised from the lack of investment in the business(es).

    Not saying I have the answer - but your over capacity comment plays into a reason why cap ex is so low....which has contributed to income/employment stagnation and for the bottom 80%, a falling standard of living......which self perpetuates employment/investment stagnation....


    Sep 13 11:07 AM | Likes Like |Link to Comment
  • Jobs Friday---When Bubblevision Misses The Epic Failure Of The US Labor Market [View article]
    Agreed convo
    "Business has to respond to adverse governmental rules and regulations."

    A key issue to me is that Wal-Mart, Target, Apple, et al, whether it be importing goods and/or manufacturing processes, don't have those same rules-reg's applied to their import 'product'. Not just labor, but the cost(s) of domestic reg's vs the lower reg'd EM countries has created an uneven playing field...tilted toward large business that can absorb, control and create the reg's with a dose of lobby/cronyism.

    Small business ownership is now at an all time low. Concentration of control by the biggies are squeezing out small businesses.
    http://bit.ly/1nORFsM
    Sep 13 10:32 AM | 1 Like Like |Link to Comment
  • The Bull's Self-Delusion [View article]
    MC I agree
    I'll put it this way - back "in the day" 30-40 years ago, a guy or gal entered the work force and (generally) was mentored into an industry - to learn the business and grow in an industry.

    Now I see far less of that. If it's a public company, you're a piece of meat that can be molded into a company 'man' or let loose if you're not 100% endeared to the company mantra. I guess I'm saying, the greed and power/control grab has overtaken integrity and a sense of being/individual. This has always existed, but more so now...partly a function of industry concentration and limited mobility choice for employees - but more so a disregard of the well being of the younger newbies in favor of increasing control at all costs.

    Not a great description - but IMO there's a trust/loyalty that's missing today vs 'back in the day' that has commoditized the employee pool. Maybe globalization has furthered that - either way, I'm not feeling as confident for my kids 'business life', as the confidence I had in the early 80's and into the 90's. Too much concentration of industry sector control has contributed I'm sure.
    Sep 12 10:58 PM | Likes Like |Link to Comment
  • The Bull's Self-Delusion [View article]
    they (CB's) will print
    Sep 12 07:49 PM | Likes Like |Link to Comment
  • The Bull's Self-Delusion [View article]
    Ryan you might want to consider; not exactly the subject of the article, but well worth noting a main reason why equities have performed well. It could be bond prices and equities divergence is more significant than you think.

    http://bit.ly/1uzMhys

    excerpt from Harvard Business Review report in the link;

    .....The allocation of corporate profits to stock buy- backs deserves much of the blame. Consider the 449 companies in the S&P 500 index that were publicly listed from 2003 through 2012. During that period those companies used 54% of their earnings—a total of $2.4 trillion—to buy back their own stock, almost all through purchases on the open market. Dividends absorbed an additional 37% of their earn-ings. That left very little for investments in produc-tive capabilities or higher incomes for employees.
    Sep 12 07:46 PM | Likes Like |Link to Comment
  • Jobs Friday---When Bubblevision Misses The Epic Failure Of The US Labor Market [View article]
    Let's punish the EPA for laying down regs on domestic production - regs that big guv't doesn't require from many EM producers to import here. Yes?

    Just maybe multi-national big biz has some pull so that they can buy under priced/under reg'd production imports vs domestic companies that 'follow the rules'.
    Sep 11 05:24 PM | 1 Like Like |Link to Comment
  • Jobs Friday---When Bubblevision Misses The Epic Failure Of The US Labor Market [View article]
    I forgot to mention Big Pharma.
    They love the jammed pharmacies, pink ribbons and bike rides....

    There's more than a few elephants in the room. At&T break-up shows what can happen when competition is given a chance.

    I doubt the local savings and loans are fairing too well against the Primary Dealers....so TBTF's now bigger than when they were TBTF.........
    Sep 11 05:14 PM | 1 Like Like |Link to Comment
  • Jobs Friday---When Bubblevision Misses The Epic Failure Of The US Labor Market [View article]
    Gov't and big business aren't necessarily 'friends' but they sure know how to do 'business' with them.
    The bloated rolls of lobbyists and huge sums dumped into engineering legislation and regulations sure isn't helping small to medium business.

    Small business is now at an all time recorded low.
    http://bit.ly/1nORFsM

    Remember when the Dept of Ag head (Butts I think) said in the 70's to farmers; "get big or get out". Well, they got out and now we have a circle jerk of Gov't (FDA, USDA) catering to Big Ag - which caters to Big (junk) Food/Fast Food - which caters to the Health Care system - which is so out of control - that it caters back to the BIG GUV as our nanny state 'savior'.

    Think about it. Gov't intervention has done what for the standard of living of the middle class?

    Centralization of control marches on....until it doesn't. Local knowledge continues to decline. Mentoring used to be a big part development for early hires. No wonder skills don't match ....cheap imported skills and/or production.
    Sep 11 05:10 PM | 2 Likes Like |Link to Comment
  • Envy Has Got Nothing To Do With It [View article]
    My view; fewer enterprises means larger concentrations of power...huge stock options/salaries because they can. Less concentration; more enterprises - jobs and less "1%" but more top 30% and increased employment. More enterprises = more bargaining power and demand for workers.
    Increased political clout increases the opp for power consolidation and stifling competition.
    Sep 7 06:18 PM | 1 Like Like |Link to Comment
  • Envy Has Got Nothing To Do With It [View article]
    ..."you have begged the only question worth considering - the nature of government (and, of course, our responsibility for its being as it is)".

    Agreed that's a relevant point Larry.

    The revolving door(s) with industry positions and the gov't departments, IMO, concentrates power/control. Control concentration through regulations and power lobby $ for controlling legislation inhibits competition and is a barrier to entry/scale to compete.

    AT&T was broken up and innovation spawned unthought of communication sectors. TBTF banks are now larger than 2008, putting lower volume/local and regional institutions at a disadvantage - further concentrating risk and diffusing local strength... in any industry.

    Chinese, South/Central American, et al, "corruption" might come in different forms than ours, but it's right under our noses every day. Increased concentration has reduced local opportunities - hence increased inequality.
    Sep 6 05:52 PM | 2 Likes Like |Link to Comment
  • The Real Reason For The Housing Bubble And The Financial Crisis - Investment Implications [View article]
    Agreed D L.A. and equities are in the same spot with zirp.....
    Sep 3 05:07 PM | Likes Like |Link to Comment
  • The Real Reason For The Housing Bubble And The Financial Crisis - Investment Implications [View article]
    Sub prime auto loans have surgeed (i think) to new highs.
    Student loans taking up much of the slack from the tighter standards of mortgage lending
    Sep 3 05:05 PM | Likes Like |Link to Comment
  • How We Know High Inflation Is Coming [View article]
    glad some of you guys figure this stuff out!!

    My thought is the lack of fixed income yield missed from zirp. I suppose the valuations popped nicely initially and incrementally some higher bond values as QE's sea sawed rates. Newly issued bonds - not much there hence the equities market pump.

    Where does the Fed go from here? Would seem the largest (bond) bubble of all time has been created. How much wealth destruction can holders tolerate when rates rise?
    Sep 3 04:54 PM | Likes Like |Link to Comment
  • How We Know High Inflation Is Coming [View article]
    Asby
    Thought you might be interested in this (from ZH)
    CB's trading in equities, futures, et al
    http://bit.ly/1wTHUm7

    End of article has comex reference

    I suspect it to be true. Unbelievable but true.
    Aug 30 05:32 PM | 1 Like Like |Link to Comment
  • Quantitative Easing In The Short Term Will Lead To Deflation Long Term [View article]
    vaild points NeedMore
    Aug 27 12:47 PM | Likes Like |Link to Comment
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