Headline this am: “US Stocks Gain on Durables Report.” Ah, the innocent little darlings.
See our last sketch for a quickie on why we are going nowhere.
Desperate, children at the helm lock onto a Durables headline as if it were a life preserver. In fact, today’s Feb Durables print was weak because non-defense capital goods orders, ex aircraft, were down again, following a downward revision for January.
Come on now. Business equipment investment is going nowhere and we know why – a statist administration and an interventionist Fed.
Businesses are flush you say? Right, after their 2013 borrowing binge but guess where most of that went – stock buybacks. We haven’t talked to one business leader who intends to increase equipment spending, or payroll much either, for that matter. These guys are not stupid for goodness sake.
Robert Craven
See our last sketch for a quickie on why we are going nowhere.
Desperate, children at the helm lock onto a Durables headline as if it were a life preserver. In fact, today’s Feb Durables print was weak because non-defense capital goods orders, ex aircraft, were down again, following a downward revision for January.
Come on now. Business equipment investment is going nowhere and we know why – a statist administration and an interventionist Fed.
Businesses are flush you say? Right, after their 2013 borrowing binge but guess where most of that went – stock buybacks. We haven’t talked to one business leader who intends to increase equipment spending, or payroll much either, for that matter. These guys are not stupid for goodness sake.
Robert Craven
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