Barrons.com’s Bob O’Brien comments on Ben Bernanke’s speech earlier this week in which he believes the recession is over, but not without qualifications.
The market does not beat them. They beat themselves, because though they have brains they cannot sit tight. ~Jesse Livermore
Without getting into a discussion on healthcare and its politics, one reality of our soon to be new system is the inevitable further rise in government spending that is headed to 25% of US GDP from its long term average of about 20%. In order to finance this, there will be a smaller private sector and as a result, there will be slower economic growth as nothing is for free. Should the average P/E ratio over the past 100 years of 15x still apply going forward or should there be a revaluation of the multiple paid for US corporate earnings?...
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September 17th, 2009 at 1:54 pm
“Mission Accomplished!”
September 18th, 2009 at 1:44 pm
While there are positive indicators outlined by Mr. Bernake, the two measures that we should be paying the most attention to are GDP and unemployment. Until both of these show measurable progress, we are still in uncertain times.
Renee Fellman, a turnaround expert, is giving armchair economists a shot at winning $1,000 by giving your own predictions based on these two measures.
Visit her blog and enter her contest, “Are you smarter than an economist?” at:
http://theturnaroundblogger.com/index.php/are-you-smarter-than-an-economist-contest/