When I went to college, the tuition was not as ridiculous as it is right now so I was able to work part-time to pay for it. But right now with the help of the government that is driving tuition costs, some young people have to turn to porn to pay for it. Our leaders should be proud of themselves.
Yesterday, the GDP numbers for the first quarter 2014 came out and they were unexpectedly worse than anyone expected. By anyone meaning clueless economists. Anyway, I had a conversation with a friend and he said, “This quarter they blamed it on weather. Next quarter, they will blame it on the FIFA World Cup.”
Today, we have ABC News come up with the article “World Cup Taking a Bite Out of Worker Productivity.”
You really cannot make this stuff up.
The beginning of the year was not just bad for the United States economy: It was, on paper at least, the worst quarter since the last recession ended five years ago.
The Commerce Department revised its estimates of first-quarter gross domestic product Wednesday to show that the economy contracted at a 2.9 percent annual rate. A combination of shrinking business inventories, terrible winter weather and a surprise contraction in health care spending drove the first-quarter decline, which is the worst since the first quarter of 2009, when the economy shrank at a 5.4 percent rate.
What makes the sharply negative number all the more stunning is that it didn’t feel like an economic contraction at all in the first quarter. Employers kept adding jobs. Many measures of business activity and consumer confidence were stable. And forecasters are expecting a healthy pop of growth in the second quarter, which ends next week.
Mr. Market rediscovered gold and other precious metals on Thursday, resulting in the metal’s biggest one-day rise in more than half a year. It was the 14th biggest single-day move in the price of the most popular gold ETF and a day that one trader termed ”frantic” for repositioning and short covering.
Okay, then. Why? Strategists are pointing to the Federal Reserve and its decision this week to stand pat on monetary policy. Not convinced? Neither are these strategists very convinced — except when a few of them are declaring that the market is growing increasingly skeptical of the Fed. If skepticism’s the driver, then the turn toward anti-Fed assets like gold would make more sense.
Those High Chicken Prices are just Noise – Tell that to the Cashier
The Fed today in their press conference lost any credibility on a number of issues, and it really goes to show that they have no clue what they are doing at this point. First they called the overheating inflation in the economy Noise, yes you heard right NOISE which is now showing up even in the watered down indexes used to track it by the Fed, and already above their target of 2% on a year over year basis and rising, (wait until you see the next two month`s CPI reports on a spike in gasoline prices as we enter the summer driving season).
45% Appreciation is Normal Price Discovery & In-Line with Historical Norms
Then Janet Yellen says she sees no signs of a bubble in equity prices after a 35% appreciation followed by what looks like another 10% plus year of appreciation in the cards for 2014. It is one thing to be dovish, but when one goes out of their way to mischaracterize the data to such an extreme that it makes one lose any credibility just to justify a given monetary policy, that is when the proverbial shit hits the fan.
No Clue at this Point!
In Three-Card Monte, it seems so easy to find the “money card.” But after placing a bet, victims invariably lose. Why? First, they are falsely led to believe they can win. Second, they don’t realize the other “players” are actually in on the fix.
In Wall Street’s version of this ruse, investors don’t realize how much misleading information is fed to them. This “analysis” is designed to make it appear that