the stock market means nothing

“It’s almost worth the Great Depression to learn how little our big men know.” —Will Rogers

The bottom line is that there can be no rational expectation that things will get better.

…the mini-booms we’ve seen each year for the last 3 years were ephemeral, lasting only a few months. There is nothing mysterious about this in so far as these episodes were necessarily mirages.

These brief outbursts of hope did not rest upon a foundation of fundamental economic health.

Volatility is an expected outcome in an environment in which central banks alternately do and do not bankroll the stock market, which itself is an emotional non-indicator of our economic health.

In short, movements in the stock market mean nothing.

purchasing our mood

“I’ve known rich people, and why not, since I’m one of them. The majority would rather douse their dicks with lighter fluid, strike a match, and dance around singing Disco Inferno than pay one more cent in taxes to Uncle Sugar.” —Stephen King

free lunch of economic rent

Michael Hudson

Suppose you were alive back in 1945 and were told about all the new technology that would be invented between then and now: the computers and internet, mobile phones and other consumer electronics, faster and cheaper air travel, super trains and even outer space exploration, higher gas mileage on the ground, plastics, medical breakthroughs and science in general.

You would have imagined what nearly all futurists expected: that we would be living in a life of leisure society by this time. Rising productivity would raise wages and living standards, enabling people to work shorter hours under more relaxed and less pressured workplace conditions.

Why hasn’t this occurred in recent years? In light of the enormous productivity gains since the end of World War II – and especially since 1980 – why isn’t everyone rich and enjoying the leisure economy that was promised?

If the 99% is not getting the fruits of higher productivity, who is? Where has it gone?

the market that won’t market

Dan Crawford: 

The only commonality is that all of the medications we have seen in shortage status are off patent, generic medications, that are harder to formulate than various others and have a definable shelf life. 

President Obama has signed legislation that will give the FDA more latitude in heading off shortages, but this problem plainly reports to a market problem.

Demand exists, buyers are stable, but profits are not high on these medications. This would suggest that companies are simply avoiding generics and focusing on more profitable patented medications. 

Meanwhile, cancer trials have been put on hold…