Tears For Capital

Tears For Capital

Expectations matter, we're told. And they're rising when it comes to prices. According to the April vintage of the New York Fed's Survey of Consumer Expectations, views on the cost of housing have never been more... well, I'm not sure if the word is "optimistic" or "pessimistic." I suppose it depends on your vantage point. Home price change expectations jumped last month to a fresh series high of 5.5%, data out Monday showed. That was up sharply from 4.8% in March (figure below). Expectatio
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6 thoughts on “Tears For Capital

  1. It’s been pretty clear to me for a while that much of the financial punditariat (paperpushers) thinks products are abstract widgets and workers are a cost on the paper to be eliminated by outsourcing and technology.

    Problem is, US consumers are the lynchpin of a global financial system that exports their dollars abroad and funnels the rest into the hands of the corporate elite at a compounding nonlinear rate. Perhaps the system is finally running up against this limit.

    Are we not simultaneously reading about an impending buyback binge? Weren’t these corporates bailed out just last year in the credit markets by the ‘domestic banking authority’ that has mission creeped into centrally planning this “capitalist” economy? It would seem there is more than enough cash available to “invest” in a workforce (also a customer base). “Whining” is the right word for it, if it’s coming from this direction. If they refuse to give raises, perhaps we can do without the widgets. Does one really need their widgets to live? Do they really want the slaves to start thinking about how their mindless consumerism might help keep them in chains?

    If they’re worried about their cash flows, they can simply issue another bond and sell it into the FED-backed corporate debt market. Viola. One more card to the house of cards. It’s like magic.

  2. The split between capital and labor needs to be both regulated and transparent.

    I have yet to figure out why any CEO deserves 1000 times the wages of the average worker.

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