The article, “Why Wall Street’s Dow 20,000 is totally meaningless” at The Conversation is an interesting read, but the really interesting read is the first comment by TJ Martin.
“I agree that the mythical magical 20,000 is of no consequence albeit I’d disagree as to the most important reasons why:
- The Big Three automakers are currently sitting on 110 – 177 days of inventory [ 30 is optimal 60 is reasonable anything above 100 is abysmal ].
- On top of that all the rebates and incentives they’re pushing in order to lower the inventory have all but eliminated profits with many cars now selling at a loss
- Which leads to the fact all but ignored by the news [ excepting the automotive business news ] that as of 1/15/17 just under 100,000 GM/Ford/FCA employees across the US have been laid off with multiple assembly [ and what few manufacturing plants there are ] are on temporary shut down despite all the corporate cronyism rhetoric coming from the Big Three in support of Trump’s lies
- IBM which in a spat of cronyism last December claimed they’d be adding 10,000 jobs ….. has just laid off 10,000 workers while revealing a net loss of epic proportions
- At oil’s current prices every oil company is operating at a loss .. despite all the Federal subsidies in place to try and offset it [ to be profitable oil needs to be $123 per barrel or higher ] And yet in Trumpland we need more oil production to the detriment of all else
- Despite all the rhetoric to the contrary from the Real Estate and Mortgage Industry several major markets including SF , Houston NYC etc * are now either in decline or the bubble has burst | ironically Trump Tower in NYC is on the verge of bankruptcy
- Several businesses large and small including American Apparel . Victory M/C , Barnum & Bailey circus etc have gone under since 1/5/17 costing multiple jobs as well as tax revenue
- And remember all the cronyism surrounding GM and Ford about stopping continued investment in Mexico ? Funny thing … billions are on deck and in the hands of GM and Ford’s Mexican leadership earmarked for expanded manufacturing to be exported to the US
- Speaking of cronyism . Carrier .. and all the lies they told in order to garner favor from the POTUS . Saved 1000 jobs ? Not hardly . More like barely 400 .. with approximately 3000 about to be laid off
“Then factor in all of Trump’s ludicrous and ill thought out promises … a National debt about to double in the next 24 months .. the isolationism Trump is creating between us and them worldwide .. and …
“sigh … etc .. etc … et al … ad nauseam .. which then begs the question … what in the devil is driving Wall Street up ? Cause it certainly ain’t the reality on the ground.
“Wall Street – The very epitome of a Potemkin Village .. to who’s benefit one can only guess”