The Obama Administration’s $5.8 trillion of big government deficit spending has caused the United States to suffer an “internal devaluation,” as American worker wages after inflation were forced down in each of the last five years. American competitiveness increased by over 10% due to worker sacrifices, but all the benefits flowed directly to corporate officers and financial speculators. When the President recently lamented, “The combined trends of increased inequality and decreasing mobility pose a fundamental threat to the American dream,” he could count on the unwavering support from Warren Buffett, who was the last year’s biggest dollar gainer with a $12.5 billion jackpot.
This Obama economy has soup lines as far as the eye can see. It also appears that many could easily be standing in two, three or even four lines simultaneously!
Although you might think the markets simply respond any time Ben Bernanke sneezes, his “cold cycle” is not one of the indicators that will spell the slowing and eventual cessation of the printing press at the Fed.
There actually is a mathematical formula used by the Federal Reserve to determine when to stop the presses.
This is a syndicated repost courtesy of Money Morning. To view original, click here. While most Americans may feel overworked and underpaid, the steady climb of CEO pay has ensured that chief executives most assuredly are neither. According to data compiled by the AFL-CIO, the average CEO pay at 327 of the nation’s biggest companies…
A rising tide of capital expenditure (capex) spending by U.S. companies will drive a stock market rally that could last as long as five years, BMO Capital Markets Chief Investment Strategist Brian Belski says.
In a message delivered to several news outlets, Belski argued that U.S. companies will soon start using their increasing cash piles to invest in their own businesses. He sees it as the next logical progression for companies with strong balance sheets.
Of the four ways a company can spend cash, he said, three have already been widely employed.
“What typically happens is you have a surge of [stock] buybacks, which has occurred. You have a surge of dividends, which has occurred,” Belski told Bloomberg News. He also noted the wave of recent mergers and acquisitions.
Capex is the fourth way, and Belski not only thinks it’s inevitable, he says the corporate growth that will result will power a stock market rally that will last “at least three to five years” and could well be the beginning of a “super bull market” that could go on for as long as 15 to 18 years.
“We think this train has a very long tail,” Belski told Breakout.
This is a syndicated repost courtesy of Money Morning. To view original, click here. The U.S. employment picture is expected to show continued signs of improvement when the Labor Department releases January’s U.S. jobs report Friday morning. Projections are for nonfarm payrolls to have gained 168,000 employees during the first month of 2013. While a…
This report is an excerpt from the permanent Employment Chart page. The edge that Federal Withholding Tax collections had held over last year continued to narrow last week, suggesting a weakening employment picture in May. The chart below compares current withholding tax collections with last year on the same date. This year collections have been…
Let’s play “guess the nonfarm payrolls.” After all, our guess is as good as the conomists’, whose forecasts nicely fit a random distribution of hits and misses month in and month out. My guess? The headline non farm payrolls number would be reported as a drop of 337,000 tomorrow if you believe the withholding tax…
There has been much ado about the US employment numbers both from surveys and the BLS. Most of this centers around bogus numbers from the BLS, but I prefer to jump to the quick, and look at withholding taxes. Really what difference does it make if there are few hundred thousand new jobs if they are part time, pay low wages, and have no benefits. The bottom line comes from stepping back and looking through the lens of the last four months, using the government fiscal year to date (October to now) , which incorporates XMAS hiring. Lee Adler noted a surge in January which is now fading. In using this data in the past, anytime you get something spiky it will usually have to do with YoY timing or an outlier. Charles Biderman at Trim Tabs sees nothing here. The four month wages withheld data shows very little improvement either, which to me casts serious doubt at least on the quality of any job improvement. Per the Daily Treasury Statement, so far in the current fiscal year total withholding is 618.5 bn vs 616.7 bn YoY, hardly an employment boom. Corporate taxes collected are 74.5 bn vs 68.9 bn. If you are wondering how corporations [...]
The Corporate Media in the U.S. is a handmaiden to the Financial and Political Elites, issuing simulacra of “news” and “analysis” in service of the Status Quo.
If there is any America “industry” ripe for widespread discrediting, it is the U.S. Cor…