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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (18601)	5/1/2002 11:52:30 PM
From: TobagoJack	Read Replies (2) \| Respond to of 74559

Jay, with record money supply increases and flood of liquidity at the spigot, how come credit is tightening and stock market is not booming? Ref: quote.bloomberg.com seattletimes.nwsource.com quote.bloomberg.com quote.bloomberg.com ... perhaps because businesses are not investing, not hiring, and thus unwilling to take advantage of the deluge, figuring that soon the consumers will be fully tapped out, even as they are fascinated by all the stats flashing by on CNBC screen. Classic mania induced bubble explosion causing officialdom to try to print away the sorrows of mis-allocated investment nausages, productivity increases not withstanding. But, Jay, consumer spending is strong and accounts for 75+% of GDP. Yeah, but Jay, business spending/investment account for 67+% of all monetary flow, paying the consumer workers so that they can borrow and spend, and businesses are stopping, tapped out at the balance sheet level, and constricted at the P/L floor. Message to Greensputin, GDP is meaningless when taken out of business spending context, GDP growth is not meaningful when not put in debt/credit environment, and productivity growth is misleading, except that it is also a artifact of bean counting protocol. How else can it be that the market is in a third down year in face of all the monetary and fiscal engines revving at high RPM? Perhaps because the engines are low on oil, the fuel lines are constipated by debt, and the spark plugs are not made of gold? Maybe, perhaps, just possibly, but not for certain, yet. Chugs, Jay