Mercury Rising 鳯女

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Archive for June 22nd, 2009

Diving klaxon

Posted by Charles II on June 22, 2009

Anuj Gangahar and Michael Mackenzie, FT

Growing pessimism about the prospects for a global economic recovery sent stock and commodity prices tumbling on Monday while new data showed that leading US corporate executives were cashing out of their share holdings at a rapid pace…

“The smartest players in the US stock market – the top insiders who run public companies – are not betting their own money on an economic recovery,” said Charles Biderman, chief executive of TrimTabs.

Smartest players? Well, the ones with inside information, anyway.

David Wilson, Bloomberg:

U.S. and European stocks are destined to fall below March’s lows if bear-market history is any guide, according to Jim Reid, a strategist at Deutsche Bank AG.

Share prices tend to hit bottom “at extremely cheap levels” relative to earnings during so-called secular bear markets, Reid wrote five days ago in his first equity strategy report. Secular bears consist of multiple rallies and declines, with each slump producing lower valuations than the prior one.

The CHART OF THE DAY shows the Standard & Poor’s 500 Index’s price-earnings ratio since 1900, based on data compiled by Yale University’s Robert Shiller and cited in Reid’s report.

Shiller calculated the P/E ratio at 6.6 in September 1982, just before the 1980s bull market started. The gauge sank to less than six in the depths of the Great Depression and at the beginning of the 1920s. This year, it has stayed above 13.

Posted in financial crisis, stock market, You're On Your Own-ership Society | Comments Off on Diving klaxon

Empathy, Republican Style

Posted by MEC on June 22, 2009

Scrooge

From Think Progress, a commentary by Cynthia Davis, the [Republican] chairwoman of the Missouri House Special Standing Committee on Children and Families, on a state program to provide meals during the summer for children who rely on school meals during the school year:

Anyone under 18 can be eligible? Can’t they get a job during the summer by the time they are 16? Hunger can be a positive motivator. What is wrong with the idea of getting a job so you can get better meals? Tip: If you work for McDonald’s, they will feed you for free during your break.

There are so many things wrong with this I don’t know where to begin. With the unemployment rate? With the assumption that hunger is caused by laziness?

She goes on:

It really is all about increasing government spending, which means an increase in taxes for us to buy more free lunches and breakfasts.

Do Republicans really believe that liberals concoct unnecessary programs just as an excuse to increase taxes as an end in itself?

Representative Davis needs a visit from the Ghost of Christmas Present. And a few days without eating, just to know what it’s like.

Posted in Republicans as cancer | 5 Comments »

 
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