Wednesday, April 20, 2016

Earnings Actually Now Matter?
Discussion between John Rubino* & Gordon T Long* on the the relationship between corporate earnings & stock prices, how there has been a disconnect in this regard in recent years .. Rubino says if there is an economic recovery in the U.S., there should be blowout numbers on earnings but there is not .. "Finance at this late stage of Capitalism is now the biggest part of the economy, so you can't have banks shrinking, reporting losses or lower numbers Y-o-Y, laying people off or pulling back on lending and at the same time have a growing economy! They are mutually exclusive when banks are such a large part of the economy." .. discussion on leveraged loans, how they are critical to sustaining the growth in collateralized loan obligations (CLOs) which have been steadily weakening .. the bubble now is in student loans & auto loans & corporate leveraged debt, not mortgages as it was back in the financial crisis .. 32 minutes

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