Given Memorial Day, we must remember those forever loved, now lost, in the service of our Country.
https://www.youtube.com/watch?v=BB2Ad04mukI
Monday, May 25, 2015
Wednesday, May 6, 2015
Just last Monday, Fed Chair Yellen said equity prices are high. Yes, that seems to be a rational conclusion. After all, the S&P 500 P/E appears around 20, plus some change. Nonetheless, I hear that historically such a number isn't too high.
Reality is that in the past, even with equity bubbles, there was the prospect for increasing business propositions. Namely, the internet in early 2000's. A bubble occurred, popped and finally did realize a profound growth potential. Which by the way created super technology to create the banking bubble realized in 2008 with Lehman and others.
Now, banking is probably way too conservative on lending criteria. Yet they have to be to comply with capital requirements and the balancing of equity versus lending. That dynamic leads to stunted growth in capital development in business.
We also have a condition of net loss of jobs globally, due to automation. That obviously leads to a net loss of consumers. I've mentioned previously what Henry Ford did for his company, and the market, many decades ago.
Today, consumers remain as real as they did yesterday. So often, a corporation will automate a job once held by a human, to be replaced by a machine. Like I've said, the machine doesn't buy any products, while the human will ultimately by products, if not a Ford pickup.
To make sales, one needs buyers. Therein resides the difficulty of this present day economy. Corporate revenues, a.k.a sales, are flat to down. That does not simply imply a flat buyer of products, it screams a flat and down buyer of products.
O.K. I will play the game.....who the hell do you sell to when all jobs are gone.....How about selling to call center folks all day long. Thank God they can hire a plumber.
Tell you what, after lifting about a ton for exercise and running a few miles, there is nothing I adore more than a McDonald's hamburger and french fries. No ice cream, I save the appetite for meat and potatoes. I get my ice cream in the morning. If I wake up in time.
Reality is that in the past, even with equity bubbles, there was the prospect for increasing business propositions. Namely, the internet in early 2000's. A bubble occurred, popped and finally did realize a profound growth potential. Which by the way created super technology to create the banking bubble realized in 2008 with Lehman and others.
Now, banking is probably way too conservative on lending criteria. Yet they have to be to comply with capital requirements and the balancing of equity versus lending. That dynamic leads to stunted growth in capital development in business.
We also have a condition of net loss of jobs globally, due to automation. That obviously leads to a net loss of consumers. I've mentioned previously what Henry Ford did for his company, and the market, many decades ago.
Today, consumers remain as real as they did yesterday. So often, a corporation will automate a job once held by a human, to be replaced by a machine. Like I've said, the machine doesn't buy any products, while the human will ultimately by products, if not a Ford pickup.
To make sales, one needs buyers. Therein resides the difficulty of this present day economy. Corporate revenues, a.k.a sales, are flat to down. That does not simply imply a flat buyer of products, it screams a flat and down buyer of products.
O.K. I will play the game.....who the hell do you sell to when all jobs are gone.....How about selling to call center folks all day long. Thank God they can hire a plumber.
Tell you what, after lifting about a ton for exercise and running a few miles, there is nothing I adore more than a McDonald's hamburger and french fries. No ice cream, I save the appetite for meat and potatoes. I get my ice cream in the morning. If I wake up in time.
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