Home > Daily Reading on the Financial Markets, Financial Ponzi, investing, Stock Market > Daily Reading in the Financial Markets: 8/29/11

Daily Reading in the Financial Markets: 8/29/11

Macrostory notes the correlation between consumer confidence and GDP.  Consumer confidence has fallen off a cliff.  GDP to follow?

Paul Woolley fears the financial markets – and entire financial system – is careening towards self-destruction.  From Zero Hedge.

Paul Gordon on the trade-off favoring corporate profits at the expense of labor employment and wages.  From Naked Capitalism.

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  1. August 29, 2011 at 9:57 am

    The consumer confidence bit is EXACTLY what I was discussing with a commenter on my blog this morning. The CEOs know their consumers, and several have made concerning remarks about the state of their customers.

    If the top CEOs know confidence is key (and failing)… draw your own conclusions, right?

  2. August 29, 2011 at 10:38 am

    I couldn’t agree more. I see the fantastic balance sheets of corporate America – and the enormous of amounts of cash earning no return – as an extremely bearish sign. Good for corporate bonds, but bad for the economy. If corporate leaders were confident in a sustainable economic recovery that cash would be put to work on capital expenditures and hiring new employees. I see stock buybacks as just an alternative to doing nothing, and not especially bullish. I think true bullishness is expressed by hiring and capital purchases, not stock buybacks. We are seeing some of the latter, but little of the former. I agree with you 100%, Options.

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