- Jul 29, 2014
- 22,047
- 23,183
To me it's like this. Sooner or later(probably later)the government will have to answer for why unemployment is remaining so high after the pandemic, whenever they let that be known. A ton of people are assuming there will be some major economic growth....I'm telling you it has already been priced in....this is as good as it gets.
Yesterday our trade deficit went to the highest level EVER.....Labor force participation for over 55 went WAY down, don't quote me but I think it was the biggest drop ever(way too soon for 98% of people this age to retire)...Interest rates are historically low BUT they are steadily rising...Higher rates point the way to lower prices-economics 101 in the housing market.
People are stupid but when they notice their neighbor and co workers getting laid off, realize they are paying $4.00 a gallon for gas, their taxes including property taxes are going up along with the utility bill for no reason their sentiment will shift just like it did going from 2006-2007. Oh and banks and financials are way over their heads in derivatives again(sound familiar). Look at what the liquidation of one hedge fund starting last week did to some of the financials yesterday, some down 11%. There is no way out.
It's just a matter of when the make up comes off the pig....
Yesterday our trade deficit went to the highest level EVER.....Labor force participation for over 55 went WAY down, don't quote me but I think it was the biggest drop ever(way too soon for 98% of people this age to retire)...Interest rates are historically low BUT they are steadily rising...Higher rates point the way to lower prices-economics 101 in the housing market.
People are stupid but when they notice their neighbor and co workers getting laid off, realize they are paying $4.00 a gallon for gas, their taxes including property taxes are going up along with the utility bill for no reason their sentiment will shift just like it did going from 2006-2007. Oh and banks and financials are way over their heads in derivatives again(sound familiar). Look at what the liquidation of one hedge fund starting last week did to some of the financials yesterday, some down 11%. There is no way out.
It's just a matter of when the make up comes off the pig....
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