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?

Advertisements

About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s