It's official the economy has turned......

pspr · Feb 28, 2012

Quote from Tsing Tao:

To be fair, that indicator is so volatile it is almost worthless to use for anything.

Although it doesn't move in a straight line, I wouldn't say it is too volatile to be worthless. The biggest problem with this indicator is that it subject to revision quite often.

<img src="http://c3352932.r32.cf0.rackcdn.com/1330442871_0.gif" width="455" height="331">

Covertibility · Feb 28, 2012

Quote from pspr:

Although it doesn't move in a straight line, I wouldn't say it is too volatile to be worthless. The biggest problem with this indicator is that it subject to revision quite often.

<img src="http://c3352932.r32.cf0.rackcdn.com/1330442871_0.gif" width="455" height="331">

WaPo

Economists attributed much of the decline in January to the end of the tax credit. They noted that demand for core capital goods hit an all-time high in December as most companies raced to qualify for the tax credit. Many said the underlying trend remained strong and predicted further business investment in the coming months.

Tsing Tao · Feb 28, 2012

Volatile.

Tsing Tao · Feb 28, 2012

Quote from Covertibility:

WaPo

Economists attributed much of the decline in January to the end of the tax credit. They noted that demand for core capital goods hit an all-time high in December as most companies raced to qualify for the tax credit. Many said the underlying trend remained strong and predicted further business investment in the coming months.

But I thought lowering taxes didn't stimulate the economy?

Lucrum · Feb 28, 2012

Quote from Tsing Tao:

But I thought lowering taxes didn't stimulate the economy?

Pelosi said we need a tax cut on c-span just the other day.

Of course Odumbo is calling for lower corporate taxes. Just election year pandering?

Ricter · Feb 28, 2012

Quote from Tsing Tao:

If everything is so rosy at the Fed, then why is Bernanke so worried? Why is he bringing up the possibility of even more printing with QE3?

Because inflation is not a concern and there has not been enough currency "leakage" to the working class to ensure this recovery is self-sustaining. Yes, it's unfortunate how much currency "pooling" there is within the rentier (read parasitical) class, but that's how the rules of the game are right now.

Tsing Tao · Feb 28, 2012

Quote from Ricter:

Because inflation is not a concern and there has not been enough currency "leakage" to the working class to ensure this recovery is self-sustaining. Yes, it's unfortunate how much currency "pooling" there is within the rentier (read parasitical) class, but that's how the rules of the game are right now.

So because all the money that is printed has gone to the banks and hedge funds, and not been lent out to the public, the answer should be to print even more in hopes it eventually gets there? Something about pushing on a string comes to mind here...

You said "Because inflation is not a concern". Do you really believe that?

Lucrum · Feb 28, 2012

Quote from Ricter:

Because inflation is not a concern...

You bought any gasoline lately?

Covertibility · Feb 28, 2012

Quote from Tsing Tao:

But I thought lowering taxes didn't stimulate the economy?

I didn't say that. I showed in another thread the past occurrences between income tax cuts and the resulting revenue effect.

Is reality becoming too difficult to understand?

Ricter · Feb 28, 2012

Quote from Tsing Tao:

So because all the money that is printed has gone to the banks and hedge funds, and not been lent out to the public, the answer should be to print even more in hopes it eventually gets there? Something about pushing on a string comes to mind here...

Yep. But them's the rules. Anything more direct would be socialistic, and we can't have that, can we?

You said "Because inflation is not a concern". Do you really believe that?

Yes, at this time.