Wednesday, October 21, 2009
Hyave you noticed how world stock markets keep getting ahead of themselves?
SHOOT: The fundamentals remain the same. Property markets are dead. Unemployment is a shocker. Manufacturing is flat, retail is flat. Company's fire their staff, giving their balance sheets a nice shine, but otherwise nothing has changed. It does tell you something about companies though. They're addicted to profits, but they're disconnected from real world realities. To keep the game going you have to keep the consumer consuming, and by taking away his job, you also take away his house. And so the cookie crumbles. QED.