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I have two excerpts from two different financial articles in my local paper on the same day..
The first is titled "Economic picture looking brighter" and includes this paragraph within it..
"The signs of growth were not enough to persuade the Fed to pull back on its bond purchases, which are intended to lower long-term interest rates, lift stock prices and encourage higher spending."
To me the above paragraph clearly demonstrates the manipulation *I* talk about on a regular basis. The manipulation of nearly everything economic by the government and the Bernanke led Federal Reserve Bank.
That small paragraph clearly states that the purpose of the bond purchases by the FED (currently 600 billion this time, during QE2) are intended to artificially MANIPULATE long term interest rates lower, to artificially MANIPULATE stock prices higher (this as a result of the freshly printed money of the FED being passed on to banks who use the free money to speculate in markets driving commodity prices higher, creating the inflation the FED wants and harming struggling consumers even more), and the intentional attempted MANIPULATION of consumer behavior in convincing Americans to increase spending in spite of record high debt levels throughout the economy!
The second article is entitled "Yahoo trimming it's work force ahead of holidays"
Couple of interesting notes from this one..
"SAN FRANCISCO (AP) -- Yahoo Inc. is reducing its work force 4 percent as it hands out 600 layoff notices for the holidays."
"This marks the fourth time in three years that Yahoo has resorted to mass firings to boost its earnings."
"Today's personnel changes are part of our ongoing strategy to best position Yahoo for revenue growth and margin expansion and to support our strategy to deliver differentiated products to the marketplace," the company said in a statement.
Although Yahoo clearly needed to tighten its belt to widen its profit margin, the timing of the layoffs was horrible, said Gleacher & Co. analyst Yun Kim. "I don't think this is going to score them any PR points," he said.
To me these excerpts clearly show what has been going on for more than TWO years now (actually much longer than that).. Companies, retailers, are hurting everywhere and in American business the ONLY thing that counts is the bottom line, keeping those earnings up and growing whatever the cost so the big bad stock market will not punish your companies stock price mercilessly.. This is a clear insensitive to companies to continue to lay off workers in this, using Bernanke's term "unusually uncertain" economic period.. As ALL that matters in this economy is growth of earnings and ever higher stock prices..
So are stocks a good buy right now? As nearly everyone in the main stream economic media seems to be saying they are?
Here is a clue..
Check this from the Market Ticker.. The Market Ticker Corporate Leverage Index
The economy is TRYING to do what capitalism DOES.. The economy WANTS a severe market correction (think SPX 400) and DEFLATION. The government and the Federal Reserve Bank seek to avoid that outcome at all costs! But.. ONLY for themselves and the protection of their own power and wealth, not for you..
It's ALL a lie people.. Please don't be deceived.. Trust me, they are after YOUR money any way they can get their hands on it.. Nearly ALL economic data is being manipulated CPI, GDP, unemployment and, no doubt, everything else that CAN be (reference ShadowStats.com)..Unemployment has now become an entitlement or welfare however you want to look at it.. the banks collapsed in 2008 & are f'ing ZOMBIES now, government spending, via military in large part, is being used as never before in our history in an effort to stave off total financial collapse and the Greatest Depression..
Is it really worth YOU giving up your freedoms so the elites in Washington and Wall Street can maintain their wealth and power?
Just asking..
Greg
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