“We plan more leisure for men and women and better opportunities for its enjoyment. We plan not only to provide for all the new generation, but we shall, by scientific research and invention, lift the standard of living and security of diffusion of wealth, a decrease in poverty and a great reduction in crime. And this plan will be carried out if we just keep on giving the American people a chance.”
Herbert Hoover, 15 June 1931
“The depression has been deepened by events from abroad which are beyond the control either of our citizens or our government.”
Herbert Hoover, 18 October 1931
Stocks gave up most of yesterday's big bounce largely based on jitters in the emerging markets reflected quite well in their currencies.
Jeremy Siegel of the University of Pennsylvania reiterated this Dow 18,000 target today on Bloomberg TV. What a surprise.
So why the sell off? Is this a taper tantrum as some have speculated? I think not. The FOMC did exactly what was expected of it today, and it is stressing that it will not be deterred from easy money policies in the foreseeable future.
Facebook beat revenues after the close with $2.58B versus $2.35B expected. I wonder if those numbers are ex-NSA.
The reasons stocks are selling off is because, despite official numbers and reassurances, The Recovery™ is humming along like it's 1931.
Without increases in median disposable income there will be no sustainable recovery, despite the concerns about the growing 'wage-price spiral' from some corporatist economists.
Have a pleasant evening.
