I know financial reporting is notoriously bad and the markets aren’t logical, but does that really seem like a logical reason for the market to do down? We already knew the economy was experiencing problems. It’s old data right? It’s an assessment regarding a categorization, and not particularly related to individual market sectors. Saying the recession started 11 months ago, doesn’t tell you much about how long it will last. Maybe this represents the last few dead enders that didn’t buy into the idea that the economy was suffering finally coming around.
If anything I would think the 11 month finding would make people think there is least some chance that a recovery could occur sooner.
Filed under: United States | 3 Comments
Tags: Economy, Recession
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According to Keynes, the root cause of an economic downturns is an insufficient aggregate demand. When the total demand for goods and services declines, businesses throughout the economy see their sales fall off. Lower sales induce firms to cut back production and to lay off workers. Rising unemployment and declining profits further depress demand, leading to a feedback loop with a very unhappy ending.
90% of the time you can make statistics show whatever you want 50% of time
http://nomedals.blogspot.com
I thought that thing is ironically funny. it seems the “Loony tunes”’s Coyote in the air” effect really works with some people (That reference from the Daily Show). you need to tell them directly and clearly until they realize what everyone can see. But I remember I read that successful stock traders make money from stock gamblers and less intelligent stock traders. so it might be these people who didn’t get it for one year
The Wile E. Coyote theory does make sense here. My sense is it’s partly that and partly that the business reporters/analysts/pundits are adhering to Occam’s razor when they might not be justified in doing so. Financial markets are so complex that the simplest explanation for a particular occurrence often is just that, an oversimplification.