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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of Doug Noland
June 13, 2011
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This week, the stock market took more seriously the weak economic data that it had been content to disregard.  Until recently, disappointing economic reports were viewed as holding any tightening move by the Fed further at bay.  Besides, a somewhat weaker economy would pressure the dollar lower, a process that bolstered the global “risk on” trade.  U.S. equities this week seemed to decouple with other risk assets.  U.S. stocks and the dollar declined in tandem.  Meanwhile, Treasury yields sank and German bund yields rose – as global speculators faced markets moving in all different directions. 

Our stock market and economy are now increasingly vulnerable to a self-reinforcing confidence problem.  QE2 effects boosted stock prices, and a strong market bolstered confidence.  Policy led the markets which then lugged the real economy.  Today, the soundness of economic underpinnings is increasingly in question, while QE2’s weeks are numbered.  Fiscal and monetary policies have little left to offer a marketplace that has luxuriated in policy largess.  And, as always, market direction tends to dictate the tenor of the news/analysis.  For about a year now, the bias has been to disregard the bearish and focus instead on the more optimistic interpretation of things.  I would not be surprised if this week’s stock market break proves an inflection point with respect to a more “glass half empty” view of our structurally-challenged economy and policy framework.