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View Diary: Economics Daily Digest: Pranked by the recovery (5 comments)

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  •  There is no real recovery (1+ / 0-)
    Recommended by:
    Gooserock

    Consider that the Fed is pumping $85 billion of freshly printed money into the economy every month and the only thing it can buy is about 200,000 jobs a month - (each job costs $425,000!!!).

    Basically the money is going to ramp the stock market and to corporate profits ... none of which are sustainable.

    Finally markets are broken. The stock market is a joke (manipulated to the extreme), interest rates no longer serve as a market signal, credit is flowing to cars and students helping to prop up the economy ... but again not sustainable in the long run (there will be big drags in future years).

    If we don't want to really reform the system then at least stop handing money to Wall Street. Just send everyone in the country a check each month for $300. We would get a much bigger bang for the buck.

    There's room at the top they're telling you still But first you must learn how to smile as you kill If you want to be like the folks on the hill

    by taonow on Tue Apr 02, 2013 at 08:14:00 PM PDT

    •  Why do you think markets are broken? (1+ / 0-)
      Recommended by:
      Egalitare

      Do you think the system is mistaken it what it's actually intending to accomplish?

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Tue Apr 02, 2013 at 08:19:20 PM PDT

      [ Parent ]

      •  I watch them (0+ / 0-)

        1. Interest rates should be the signal used to allocate capital (as we are in a capitalist system). With rates at zero you get massive malinvestment.
        2. There is a total lack of volume in the markets, yet they go up (usually in the overnight hours). The flood of liquidity has to go somewhere and as along as the market can be kept rising, it will keep attracting the liquidity.
        3. High frequency trading has distorted price discovery. It is just a bunch of algorithms dueling with each other. Pretty sick actually when you watch it closely.

        There's room at the top they're telling you still But first you must learn how to smile as you kill If you want to be like the folks on the hill

        by taonow on Tue Apr 02, 2013 at 08:23:42 PM PDT

        [ Parent ]

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