Despite exuberant Services and Manufacturing PMIs, Bloomberg's index of CEO sentiment remains stagnant near 2014 lows as April's hope for Q2 has faded into 'more of the same' by June. As Bloomberg's Rich Yamarone points out, in reality (in spite of all the hope), the second quarter is drawing to a close and it was a rough one for corporate America, with CEOs citing "slower growth in household income overall", "the recovery remains fragile, especially for customers on a budget", and perhaps most concerning, "whether or not this softness in store traffic is representative of a permanent sea change in customer behavior or a temporary phenomenon is hard to tell at this stage."
What happens when huge, reckless buyers with nearly endless resources cut back after a phenomenal binge? Well, we know what happened in 2008.
Those who have lost trust in Wall Street or actively hate it and everything it stands for (neofeudalism, unbridled greed, the corruption and collusion of the revolving door between the state and Wall Street, etc.) will never change their minds and hand their money to Wall Street to play with. If the primary assets held by Boomers (houses and stocks) both decline for these fundamental reasons, there may be relatively little wealth left to pass on to Gen-Y... if Gen-Y avoids bank debt/mortgages, buying conspicuous consumption luxury goods on credit and investing in Wall Street's scams and skims, this generational lack of demand for housing, stocks and luxury goods will effectively crash the sky-high valuations of these assets. These factors suggest a generational bet against banks, Wall Street, housing and luxury retail stocks.
What if all the low-hanging fruit of outsourcing jobs and financialization have already been plucked by Corporate America?
From Ancient Egypt to Modern America …
Despite all the doom and gloom in the market, we would have loved to have these employment numbers three years ago.
I never thought a visit to Omaha would trigger an appreciation of the role Icahn and other activist investors play in corporate America.
- EU Court: Google Must Remove Certain Links on Request (WSJ), people have right to be forgotten on Internet (Reuters)
- Harsh weather: German Investor Confidence Drops for Fifth Straight Month (BBG)
- More harsh weather: China Slowdown Deepens (BBG)
- Harsh weather as far as the eye can see: China’s New Credit Declines (BBG)
- "Alien" artist, surrealist H.R. Giger dies aged 74 (Reuters)
- Pfizer urges AstraZeneca to talk as UK lawmakers slam offer (Reuters)
- Property sector slowdown adds to China fears (FT)
- Russia says EU sanctions will hurt Ukraine peace efforts (Reuters)
- U.S. Considers Relaxing Crude Oil Export Restrictions (WSJ)
"Record corporate cash"..."Record corporate cash"... "Record corporate cash"
That pretty much covers most of the conversation on prime time financial media and TV stations when discussing corporate balance sheets. There is, however, one big problem with that mantra...
The concept of “net neutrality” is not an easy one to wrap your head around. Particularly if you aren’t an expert in how the internet works and if you don’t work for an ISP (internet service provider). In fact, we think that lobbyists and special interest groups make the concept intentionally difficult and convoluted so that the average person’s eyes glaze over and they move on to the next topic. We are by no means an expert in this area; however, in this post we will try to explain in as simple terms as possible what “net neutrality” means and what is at risk with the latest FCC proposal. We also highlight a wide variety of articles on the subject, so we hope this post can serve as a one-stop-shop on the issue. In a nutshell, the latest rules from the FCC is truly the American way of censorship
The 'alarming' trend of college students accurately identifying Edward Snowden as a hero has given James Clapper a panic attack. So much so, that he is taking time away from protecting us from “terrorists” (a term that now apparently includes folks at the Bundy Ranch according to Harry Reid) to embark upon a propaganda speaking tour of U.S. college campuses to demonstrate to those silly young kids that Snowden is no hero, but actually a traitorous villain.
I find it supremely ironic that ‘We the People’ have become modern day North American Indians and are taking fiat beads in exchange for our valuable land and labor.