Daily Reading on the Financial Markets: 11/30/12
PragCap quotes some of James Montier’s thoughts on financial repression and current market sentiment, including this gem: “Essentially, Bernanke’s first commandment to investors goes something like this: Go forth and speculate. I don’t care what you do as long as you do something irresponsible.”
Peter Tenebrarum takes aim at “Paul Krugman’s dangerous misconceptions” about monetary and economic policy.
Chris Kimble suggests keeping an eye on copper for a cue on market strength, noting that it bounced off support in recent days.
A very telling chart from Zero Hedge points out the “wage-less, savings-less” state of Americans. This doesn’t bode well for the impervious American consumer.
In my view, this is the result of the Fed’s ZIRP approach – which has consistently punished savers, in combination with an economy increasingly driven by publically-owned corporate monoliths who are incentivized to maximize every cent of profit rather than support local communities by providing employment where they can afford it at the cost of marginal profit gains: