'Economists and analysts failed to connect the contrast between reality and the stock market'

[marmar]

(MarketWatch) — For months, economists and the media have proclaimed that we are in full-recovery mode. While the markets were at record highs, unemployment had not improved, economic growth was stagnant and most corporate earnings had little to do with an increase in sales and revenue and were based on moves like laying-off thousands of people and shedding non-performing assets.

Last week, Goldman Sachs Group Inc. — one of those bullish outfits projecting enthusiasm — reversed its earlier upbeat message, saying that consumer spending is slowing down, which will likely have a negative impact on future growth. The significance is that most analysts and economists are coming to grips with the fact that the economic data doesn’t support stock-market valuations at these levels.

What economists and analysts failed to connect is the contrast between reality and the stock market — the low consumer spending, paltry economic growth, weak hiring by companies and reckless quantitative easing by the Federal Reserve while the stock market soared.

So, let’s look at everything Goldman Sachs (and many others) missed, and the chain of economic events. .............(more)

The complete piece is at: http://www.marketwatch.com/story/the-current-slowdown-is-more-than-a-soft-patch-2013-04-23?siteid=yhoof2

[Vincardog]

1. The facts are simple. The American worker has not gotten a raise in 30 years. The Monied class

has taken all the gains in productivity and MORE.
The top .001% has stolen our futures.
Now they want to blame us for their illegal gambling.
They are money hoarders and developed the current economic system (Capitalism) for their benefit.

Unfortunately the system is so broken that it can not be saved.

The PTB will not allow ANYone to be elected that would challenge their positions.

[mbperrin]

2. Well said.

Gambling is not a productive business, and as you have shown, siphons off everything that is real in an economy.

Adam Smith didn't think we should have stock companies, and neither do I.

[golfguru]

3. So where are our elected leaders on this?

Whatever happened to fair wealth distribution ?
Where is equal opportunity?

I guess politicians will be politicians. Say anything, do something else.

[Vincardog]

4. They have given up and gone over to the dark side. It started on our side when a few realized

it was easier to raise money from a few large corporate donors than a lot of small human ones.
They birthed the GOP-lite DLC, and have been compromising our principals increasingly ever since. They are shape shifters and go by different monikers such as "New Dems" and
"Third Way" but you can recognize them by their consistent leaning in the Corporate direction.
They appoint Goldman Sacs veterans to run the treasury and Industrial criminals to run the EPA. We can look to them for guidance, but we will always be disappointed with their performance. Their promises will be great. Their actions will be often times the exactly opposite.