Wednesday, November 27, 2013

Asset prices are going through the roof,but employment laggards creative destruction?

Asset prices(stocks,housing,ect.ect.)prices are going through the roof,but employment laggards is this because of what economist call creative destruction? Yes, in part Asset prices are rising because of FED's loose money policy,however,corporate profits are rising too(not as fast as asset prices)but double combination of easy money and good profit has lead to higher,indeed, record stock market.However,unemployment remains stubbornly high,why? Maybe because companies are doing more with less,maybe more automation leads to a better bottom line,however less workers this is what economist call creative destruction,hence,doing things better,more efficient lead to lower prices,hence,business over the long prices become lower than costs,hence,business can't make a profit(although in beginning they make more money)and this lead to deflation,which leads to depression.This is why the FED has such an easy monetary policy,fear of deflation.
Berlusconi headed for jail? Today the Italian Senate will to strip of his lifetime membership in Italian Senate,hence,he would lose his immunity from prosecution.
A curious thing,the other day Putin was visiting Italy and one of people he saw was Berlusconi,now Berlusconi is man on the Right.
I remember a picture which says thousands words,it was back in the 1990's when Berlusconi was Prime Minister,he's been in Italy politics for long time,the picture had Berlusconi in it with his wife,a stunning sexy blonde(beach I think) and President Clinton and Berlusconi wife looked at Clinton,so much desire in her eyes for charming Bill

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