Consumer Sentiment Indexes: A Picture and Table Worth Thousand Words

Dec 27 Medium Single-Family Home Prices in Ounces of Gold

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Subject:	Corporate Economy vs. People's Economy: A Picture and Table Worth Thousand Words
Date:	Thu, 27 Dec 2012 09:52:53 -0800
From:	Jas Jain

Corporate Economy vs. People's Economy: A Picture and Table Worth Thousand Words

There is very good analysis and several charts of what I call people's economy whose best indicators are Consumer Sentiment Indexes (either Conference Board or U Michigan) and Small Business Optimism Index by NFIB. I am attaching one of the charts that contains both (attached charts are only for a limited distribution). This graph doesn't go back far enough, but these two indicators of people's economy averaged over the past five years are at a level worse than during any of the recessions prior to 2007, i.e., people's economy has not come out of the recession and not going to do for a very long time. The point is explicitly made in the attached table.

 

The best measure of the corporate economy is Corporate Profits as % of the GDP that are at an all-time high. Ben Bernanke, Barrack Obama and the Congress have done nothing for people's economy while Bernanke has done everything that he can for the corporate economy. Our political leaders are simply doing what the system demands and they can only appoint those to the Federal Reserve that would serve the system.

 

Politicians are doing nothing more than what they need to do to get the job and then do everything to keep the job. IMO, the partisan voters are far more to be blamed than the politicians. The bad system has created bad players all around and the voters are first among them.

Jas

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