The Great Disconnect- GM, GDP, JPM, AA, BSC/GDT, JNJ, DIS
(All failed companies and economy terrible)
Apparently Da Boyz have determine that there is NO connection between the markets and the economy.
Fourth quarter GDP was 1.1 percent in the alleged busiest shopping season of the year. Worst GDP figure in three years. Doesn't matter.
The U.S. consumer, whose spending accounts for 70 percent of the U.S. economy, is up to his armpits in debt and has no savings. In fact, the consumer has a negative savings rate. Doesn't matter.
The U.S. trade deficit for the past year is at an all time record of about THREE QUARTERS OF A TRILLION DOLLARS! That's because the U.S. economy is becoming nothing more than an all-consuming mouth, while the few products that the U.S. actually makes are of little or no interest to foreign nations. According to Da Boyz, this doesn't matter one little bit.
The U.S. budget deficit, when the wars in Iraq and Afghanistan are added, is also at a record level. And, don't forget that the cost of entitlements like Social Security and medicare are also not factored into the official budget deficit number. Again, this is of no consequence to the markets. While the markets soar, here are more economic realities that simply do not matter:
REAL inflation is in the double digits. The prices of NEEDS are soaring. Check out the massive price increases in the past couple of years for oil, gas, housing, all commodities, food, health care, insurance, property taxes, college tuition, etc. This is of no consequence to the markets.
The airline sector is as dead as a doornail. All of the big airlines are drifting in and out of bankruptcy. The auto sector is also wearing a toe tag. The debt of GM and Ford are both rated lower than JUNK. GM's debt alone is more than $300 billion. And both companies are firing people like there's no tomorrow. Da Boyz clearly say that this is of no interest to the markets.
The housing bubble is on the verge of implosion. In fact, there are signs that the implosion has already begun, with a decline of more than five percent in home resales last month. Keep in mind that the real estate sector has been responsible for HALF of all new jobs created in the past four years in the U.S. and HALF of all U.S. economic growth in that same time frame. When the bubble completely implodes, as it will, the carnage will be unimaginable. Again, this doesn't matter to the market manipulators.
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