Synthetic Economic Growth?

Maybe it was something in the drugs the anesthesiologist was pushing Thursday, but an incredible moment of economic insight slapped me up-side the head on Friday while the market was tanking.
What if economic growth is all simulated and nothing is as it seems.

We get into that in today’s report, along with a few headlines and the best cliff-hanger of all (now being played in markets near you…)  Is this a correction or is something really “evil this way coming?”  Some damn fine questions, even if the answers are still, as of this moment, incomplete.

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Comments

Synthetic Economic Growth? — 10 Comments

  1. Just keep in mind that the financial transactions actions of Wall Street is included in GDP. Remove those and the USA looks like a sinking ship, heading for the shoals of the second world.

    And, as Byron Katy would say, just drop the “what if.”

    At least 60% of the market gains over the last two years has been the result of corporate buy backs of their own stock, using borrowed money with zero interest.

    Twenty years ago you would have run screaming from any connection with companies with such shabby fundamentals. It’s all “playing the delta” now. Buy and hold is a joke. Except for silver, up 27% for the year.

    • ac7x and I picked off about 16 counties on the Florida QSO party this weekend. Nice chat with a fellow named Dave up in Lincoln, NE, too. And an IV or some=such out of Italy…guess that answers the activity question…

  2. Hope everything went well with your eye appointment George. Make sure blueberries are included in your diet, you’ll see better in the dark, just like you help us to see better when it’s dark out there.

  3. What if economic growth is all simulated and nothing is as it seems.

    And a simple thing to do – for almost all observers of the economy numbers have to rely on the reports from the “leadership class”. The Mr. Ure’s of the world have to infer relationships via other means like shipping indexes et al. Plenty of work has been done on trust relationships in both computer security and financial fraud. If you rely on reports from insecure/insincere tools/people you will make decisions that don’t work with the reality of the situation.