Tuesday, April 19, 2016

The U.S. Economy 
– Ongoing Distortions
Acting Man essay looks at the slowing global & in particular U.S. economy .. through several charts, the essay identifies several distortions in the economy .. "We suspect that quite a bit of this credit growth has fueled financial engineering in the form of share buybacks, M&A activity and even dividend financing. This is helping to keep asset prices elevated for the time being. Small businesses are however no longer very enthusiastic .. The economy’s capital structure remains imbalanced as a result of the enormous amount of monetary pumping since the financial crisis. There is a limit to this though, even if it cannot be quantified. What can be stated though is that the greater the boom, the greater the eventual bust usually is. There are now more and more indications that a decisive inflection point may be quite near."
LINK HERE to the essay

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