We're Not Out of the Woods

Buried deep in this article about European economic issues, and today's declining stock market, are woeful employment numbers.

And one more thing. The economic battles between the US and China are just beginning. For years, China, eager to jump-start it's economic juggernaut with cheap labor, inexpensive raw materials, and oppressive government, would at least occasionally kow-tow to American demands. But no longer. They own us, they don't have to do what we ask. The kidnap a human rights activist (and refuse to disclose if he is even alive), the execute a Briton convicted of selling drugs, they smile at Copenhagen but balk at any emission restrictions or real reductions, and they somehow hack into Google...

So, America, how does it feel to be Briton in 1930?

When You Rely On Consumption

When you rely on consumption and people are not feeling too giddy about their futures...it's a recipe for a stagnant economy.

We're there, now! And the stock market finally realizes it.

Shell Games with Bank Numbers

Finally, the stock market used it's x-ray vision and saw through profit statements from a bank!  It took a few days, but the analysts realized bally-hooing banks might not be such a good idea since there really hasn't been any change in banking assets except deposits of enormous amounts of taxpayer bail-out money.

Indeed the announcement of Bank of America's numbers sent the stock market on a tail spin.  Maybe investors are beginning to wonder who the heck they can believe?

In the meantime, confidence that boomers can retire and live comfortably is at an all time low level.  In other words, we're more than slightly worried that all those nifty investments we were sold are not going to help us live like we thought when we turn 65.  

All of this is beginning to remind me of the lessons we try to teach children.  About decision making for long term gain rather than short term joy.  It seems to me that so many of the CEOs only thought about short term joy.  Money lining their pockets, not the long term health and welfare of their companies, much less their customers.  

It's beginning to feel a bit like a sophisticated robbery scheme, isn't it?