Trusting the Signals

Like EPI says, people no longer trust Wall Street.

Losing more than 10% of your net worth means that you effectively worked more for less. Your “savings” (capital) was used against you, realized in the form of a liability, lending into larceny, in late order.

(If you think scary socialism is sure to take your hard-earned money, nothing does it better than capitalism–consolidating the free market “to protect you” from the risk of the probable event.)

The event probability is back to previous levels. Leverage ratios are now at 2007 levels to support earnings with cheap money, financially engineered with M & A and buybacks. This is a sell signal–and with consumer debt again at record levels it looks like a good reason to push-up the push-out rule, too, doesn’t it!

So, knowing the event probability, who are you going to trust, the Clinton campaign or Sanders, on this?


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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