Hoping for Bad Economic Numbers
World stock markets appear to be hoping for a bad employment number this morning. Why? They want Bernanke to continue QE3. That's why. Global markets reflect the new wave: hope for bad economic news and expect a bailout. This mentality encourages homeowners to borrow more than they could ever afford to pay back. Student borrowers are encouraged to do the same. Gaming the system by behaving economically foolish pays off because of the expectation that the government will step in. At the end of the day, that is what Obamacare is all about as well.
In the bad old days, we expected free markets and incentives to fuel economic growth to raise living standards. That is no longer the plan. Now, it is all about slicing up the pie, while the pie no longer grows. The taxpayer is assumed to have endless resources. A bad assumption.
The 'entitlement mentality' has permeated every level of society and has infected global equity markets as well.
Those who are hoping for bad economic numbers will likely get their wish.
In the bad old days, we expected free markets and incentives to fuel economic growth to raise living standards. That is no longer the plan. Now, it is all about slicing up the pie, while the pie no longer grows. The taxpayer is assumed to have endless resources. A bad assumption.
The 'entitlement mentality' has permeated every level of society and has infected global equity markets as well.
Those who are hoping for bad economic numbers will likely get their wish.
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